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WAR  DIARY 


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German  Naval  Staff 
Operations  Division 


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PART  A  VOLUME  36 

.wt.  DOD      OF  3  MAY  1972,  SUBJ; 

DECL;  ll   RKU0KDS 


AUGUST  J942 


6-159: 


WAR  DIARY  OF  TEE  GERMAN  NAVAL  STAFF 
(Operations  Division) 

PART  A 
August  1942 


Chief,  Naval  Staff:  Grand  Admiral  Raeder,  Dr.  h.  c. 

Chief  of  Staff,  Naval  Staff:  Admiral  Frlcke 

Chief,  Operations  Division,  Naval  Staff:  Captain  Wagner 


Volume  36 


begun:  1  Aug.   19*12 

closed:  31  Aug.   1942 


,  3  «!tf  1972,  SBM« 


CONFIDENTIAL 


OFFICE  OF  NAVAL  INTELLIGENCE 
Washington,  D.  C. 


Foreword 

1.  The  Office  of  Naval  Intelligence  has  undertaken  to  translate 
Important  parts  of  the  War  Diary  of  the  German  Naval  Staff.  The 
present  volume,  entitled  War  Diary  of  the  German  Naval  Staff,  Op- 
erations Division,  Part  A,  Volume  5b  is  the  tenth  one  of  the 
aerie 8  to  appear.  Other  volumes  will  follow  shortly. 

2.  The  War  Diaries,  Fart  A,  are  Important  because  they  contain  a 
day  by  day  summary  of  the  Information  available  to  the  German  Naval 
Staff  and  the  decisions  reached  on  the  basis  thereof.  Together  with 
the  Fuehrer  Conferences  on  Matters  Dealing  with  the  German  Navy,  1939- 
19^5«  which  have  been  published  by  this  office,  the  War  Diaries  should 
provide  valuable  material  for  the  study  of  naval  problems  arising  from 
total  war.  The  War  Diary,  Part  A,  Is  also  a  useful  Index  to  the  German 
Naval  Archives  of  World  War  II;  references  may  be  found  In  the  micro- 
film library  of  Naval  Records  and  Library. 

3.  Due  to  the  cost  of  publication,  only  a  limited  number  of 
copies  could  be  made;  It  Is  therefore  desirable  that  the  copies 
which  have  been  distributed  are  made  available  to  other  offices 
which  may  be  Interested. 


Washington,  D.  C. 
19^8 


CONFIDENTIAL 
1  Aug.  1942 

Items  of  Political  Importance 

The  question  of  the  Second  Front  in  Europe  has  considerably  increased 
the  tension  at  hone,  according  to  observations  by  Swedish  correspond- 
ents in  London.   Both  the  caustic  criticisms  in  the  Times  and  the 
growing  sharpness  voiced  in  the  press  and  Parliament  bear  out  this 
impression.  There  is  no  doubt  that  this  question  has  confronted  the  l 
government  with  its  gravest  crisis.   British  political  circles  place 
the  main  blame  on  the  vagueness  of  the  statement  about  the  Molotov 
Pact,  which  has  resulted  in  public  insistance  on  a  Second  Front,  thus 
creating  a  threat  to  domestic  peace. 

The  Russian  radio  and  the  Red  press  have  now  likewise  begun  to  demand 
a  Second  Front. 

Great  Britain: 

In  his  radio  address  to  Europe,  the  First  Lord  of  the  Admiralty  de- 
clared that  the  continuation  of  the  war  depends  on  the  battle  of  the 
Atlantic.   Without  the  achievements  of  the  Navy  and  the  Merchant 
Marine,  Great  Britain  would  already  have  collapsed. 

Burma; 

On  1  Aug.  the  newly  established  central  civil  administration  is  taking 
ovor.   The  Japanese  Commander  in  Chief,  however,  remains  the  highest 
authority. 

Turkey; 

In  keeping  with  Turkey's  calculating  neutrality  policy,  the  Turkish 
Prime  Minister  told  the  British  Ambassador  about  his  great  satisfac- 
tion with  the  materiel  and  food  supplies  furnished  by  the  Allies,  and 
asked  the  U.S.  Ambassador  about  additional  wheat  shipments  from  the 
U.S. 

U.S.A.; 

Roosevelt  is  preparing  a  bill  introducing  universal  war  service,  in 
order  to  mobilize  for  the  war  effort  the  labor  resources  of  the  na- 
tion, which  are  estimated  at  60,000,000. 

The  trade  agreement  between  the  U.S.A.  and  the  U.S.S.R.  has  been  ex- 
tended till  1943.   Negotiations  are  in  progress  for  a  far-reaching 
new  agreement  which  is  supposed  to  grant  important  advantages  to  the 
Americans  in  return  for  Lend-Lease. 

Portugal: 

From  Lisbon  comes  the  persistent  rumor  that  Churchill  has  flown  to 
Russia. 

Sweden : 

The  press  reports  that,  following  a  torpedo  attack,  Swedish  escort 
vessels  destroyed  1  Russian  submarine  by  means  of  depth  charges  early 
in  July. 


-1- 


CONFIDENTIAL 
1  Aug.  1942 

Special  Items; 

The  constantly  increasing  air  raid  danger  and  the  damage  inflicted 
upon  the  German  shipyards  on  the  North  Sea  and  the  western  Baltic  Sea 
make  it  imperative  to  continue  moving  the  shipbuilding  and  repair 
facilities  of  the  navy  yards  to  areas  situated  farther  to  the  east. 

This,  together  with  the  fact  that  shipyard  facilities  are  inadequate 
to  begin  with,  makes  3,t  necessary  to  utilize  fully  for  the  Navy  all 
shipyards  that  are  or1"' will  become  available  in  the  East. 

The  shipyards  thus  far  taken  by  us  in  the  Russian  theater  (e.g.,  in 
Libau,  Riga,  Reval)  are  not  very  important  because  their  capacity  is 
rather  limited.   Leningrad,  on  the  other  hand,  has  a  highly  developed 
shipbuilding  industry. 

Figures  for  1939  show  that,  out  of  a  total  of  15  shipyards  and  repair 
shops  in  operation,  the  3  largest  alone  employed  as  many  as  80,000 
workers  in  3  shifts.  While  we  can  hardly  expect  these  plants  to  fall 
into  our  hands  undamaged  when  we  take  possession  of  Leningrad,  the 
importance  which  the  Naval  Staff  attaches  to  them  is  so  great  that  it 
has  decided  to  make  the  following  requests  to  the  Armed  Forces  High 
Command,  Operations  Staff  (copies  to  the  General  Staff,  Army  High 
Command,  and  the  Commander  in  Chief,  Air  Force,  Operations  Staff),  re- 
ferring to  Fuehrer  Directive  No.  44  (see  War  Diary  22  July): 

a.  It  should  be  confirmed  that  the  directive  of  the  Armed 
Forces  High  Command,  Operations  Staff  of  19  Sep.  1941,  stating  that 
the  Navy  has  first  claim  on  all  installations  of  naval  character, 
applies  also  to  Leningrad  and  Kronstadt. 

b.  Prior  to  the  expected  fall  of  Leningrad  a  directive  similar 
to  the  one  which  was  put  into  effect  on  a  previous  occasion  for 
Nikolayev  should  be  issued. 

c.  After  the  fall  of  Leningrad,  all  shipyards  and  related 
plants  should  be  exempted  from  any  intended  retaliatory  measures. 

Copy  as  per  letter  1/Skl  III  a  1843/42  Gkdos.  in  War  Diary,  File 
"Barbarossa  II".  (See  also  Conference  on  the  Situation  with  the 
Chief,  Naval  Staff  on  17  July. ) 


Situation  1  Aug.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

The  British  steamer  EMPIRE  VOICE,  located  120  miles  south- 
west of  Freetown,  sent  a  QQQ,  distress  signal,  reporting  the  sighting 
of  a  suspicious-looking  ship;  shortly  thereafter,  she  reported  having 
received  orders  to  stop. 

The  British  steamer  KALEWA  sent  an  SOS  from  a  location  360  miles 
northeast  of  Capetown,  reporting  a  collision  and  requesting  immediate 
help . 


I 


-2- 


CONFIDENTIAL 
1  Aug.  1942 

2.    Own  Situation; 

No  reports  have  been  received  from  our  vessels  In  foreign 
waters. 

Information  on  enemy  situation  is  contained  in  Radiogram  1747. 


II.   Situation  West  Area 

1.  Enemy  Sit uat ion: 

According  to  a  report  by  a  neutral  diplomat  in  England, 
dated  23  Jul.,  large  numbers  of  planes  are  being  concentrated  on  air- 
fields in  the  eastern  and  southeastern  parts  of  the  country  for  the 
purpose  of  launching  a  massed  attack  on  the  Continent. 

The  reoort  might  refer  to  the  large-scale  raids  on 
Hamburg  and  Duesseldorf  which  have  taken  place  in  the 
meantime .       ' 

According  to  a  telephone  message  received  at  0255  from  the  political 
Intelligence  service  of  the  Foreign  Office,  a  French  journalist  re- 
ported after  midnight  about  a  rumor  purporting  that  the  U.S.  Embassy 
in  Vichy  advised  American  reporters  to  stand  by  at  their  radios  on 
1  Aug.  since  an  Anglo-American  landing  is  about  to  take  place. 

If  all  this  talk  about  an  invasion  is  nothing  but 
bluff,  as  it  may  actually  be,  then  the  spreading  of 
such  a  rumor  would  prove  that  the  enemy,  too,  knows 
how  to  follow  through  to  the  minutest  detail. 

The  photographic  reconnaissance,  carried  out  by  the  3rd  Air  Force  in 
the  forenoon  and  covering  almost  completely  the  southern  coast  of 
England,  did  not  reveal  any  particularly  striking  changes.   Air 
reconnaissance  over  the  Channel  found  convoy  and  ship  movements  as 
usual. 

2.  Own  Situation; 
Atlantic  Coast: 

Nothing  particular  to  report. 

Channel  Coast; 

During  the  enemy  air  raid  on  St.  Malo  in  the  afternoon  of 
31  Jul.,  2  barges  and  1  tanker  lighter  were  sunk,  in  addition  to 
damages  inflicted  on  the  steamer  "H  2M. 

The  PT  boat  flotillas  and  the  8th  Mine  Sweeper  Flotilla  have  been 
transferred  according  to  plan  in  order  to  start  the  mine  operations 
"Masuren"  and  "Samland"  from  Cherbourg  on  the  night  of  1  Aug. 

The  artillery  group  at  Le  Touquet  was  ordered  to  be  on  the  lookout 
for  ships  from  2300  on,  engine  noises  having  been  heard  for  some  tine. 

At  noon,  50  to  60  enemy  planes  flew  over  Fecamp  in  southerly  direction. 


-3- 


CONFIDENTIAL 
1  Aug.  1942 

III.  North  Sea,  Norway,  Arctic  Ocean 

1.    North  Seat 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

During  the  night  of  31  Jul.,  the  second  part  of  the  mine 
operation  "Alba"  was  executed  according  to  plan.   The  patrol  positions 
off  the  coast  of  the  Netherlands  have  been  reinforced.   Numerous 
flights  were  made  by  enemy  planes  in  and  out  of  the  area  of  the  Ad- 
miral, Netherlands.   Naval  anti-aircraft  guns  shot  down  4  planes  in 
this  area,  while  2  more  were  downed  by  naval  coastal  artillery  and  by 
Air  Force  anti-aircraft  artillery.  The  17th  and  13th  Mine  Sweeper 
Flotillas  had  an  engagement  with  enemy  PT  boats  in  the  vicinity  of 
Zeebrugge  and  sank  one,  setting  another  one  afire.   Damage  to  our 
vessels  was  slight.   No  casualties  occurred.   Another  ground  mine  was 
swept  off  Egmond-aan-Zee. 

Group  North  has  requested  the  Commanding  Admiral,  De- 
fenses, North  to  report  whether  it  is  suspected  or  has 
been  observed  that  additional  aerial  mines  have  been 
dropped,  and  what  conclusions  can  be  drawn  with  regard 
to  British  intentions.   (See  Telegram  1523.) 

The  4  vessels  of  the  12th  Patrol  Boat  Flotilla  have  completed  their 
voyage  from  the  Elbe  to  Hook  of  Holland. 

During  the  day  between  1000  and  1700  enemy  planes  reconnoitered  the 
German  Bight  and  the  surrounding  area.   One  fighter  of  the  Mosquito 
ty>e  (wooden)  was  shot  down  near  Spiekeroog.  Four  bombs  were  dropped 
in  the  vicinity  of  the  freight  station  at  Wilhelmshaven.   For  details 
see  Telegram  1913. 

In  the  course  of  the  day,  naval  anti-aircraft  guns  shot  down  3  planes 
in  the  Dutch  area;  a  fourth  plane  was  probably  shot  down  by  naval 
coastal  artillery.   In  the  afternoon,  enemy  planes  raided  Flushing. 
The  Scheldt  shipyard  was  slightly  damaged  by  bombs. 

Convoy  routes  and  channels  in  the  area  of  the  Commanding  Admiral,  De- 
fenses, North  were  swept  according  to  plan.   The  21st  and  22nd  Mine 
Sweeper  Flotillas  swept  mines  in  mine  field  3. 

Mine  operation  "Alba"  (cutting  float  barrage  SW  105)  was  continued  by 
the  8th  Motor  Mine  Sweeper  Flotilla  in  the  night  of  1  Aug.  Transfer 
of  6  vessels  of  the  2nd  Motor  Mine  Sweeper  Flotilla  from  Dunkirk  to 
Ijmuiden  and  of  another  6  from  Flushing  to  Dunkirk  was  started  in  the 
same  night. 

Orders  of  the  Group  concerning  laying  mine  fields  for  the  protection 
of  the  Dutch  coast,  in  which  the  wishes  of  the  Army  are  complied  with 
to  a  large  extent,  are  sent  to  the  Admiral,  Netherlands  and  the 
Commanding  Admiral,  Defenses  North.  The  Naval  Staff,  Operations 
Division  is  notified  accordingly.   Copy  as  per  1/Skl  18764/42  Gkdos, 
in  War  Diary,  Part  C,  Vol.  X. 


-4- 


CONFIDENTIAL 
1  Aug.  1942 

2.   Norway,  Arctic  Ocean: 

Enemy  Situation: 

Air  reconnaissance  located  1  battleship,  2  cruisers,  6 
destroyers,  and  30  medium- si zed  steamers  near  Reykjavik.   It  also 
sighted  12  to  15  multi-engined  planes. 

Own  Situation: 

At  2300  on  30  Jul.  and  at  0100  on  31  Jul.,  batteries  on  the 
Rybachi  Peninsula  unsuccessfully  fired  at  convoys  heading  for  Petsamo, 
Convoys  in  the  area  of  the  Commanding  Admiral,  Norway  proceeded  ac- 
cording to  plan,  without  any  incidents. 

In  the  Arctic  .Ocean,  submarine  U  "601"  reported  as  of  31  Jul.  the 
sinking  of  a  2,000  GRT  steamer  in  quadrant  AT  7267.   Otherwise  there 
is  nothing  to  report. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

Nothing  particular  has  been  reported. 

2.  Own  Situation: 

During'  the  night  of  31  Jul.  an  enemy  plane  penetrated  into 
Denmark,  flying  over  Hanstholm.   The  air  observation  center  at  Hold- 
ing suspects  that  agents  were  landed.   In  the  afternoon,  the  enemy 
carried  out  reconnaissance  flights  over  Denmark  and  the  western  part 
of  the  Baltic  Sea,  apparently  with  a  single  plane.   Fighter  defense 
failed  to  yield  results. 

For  the  order  of  the  Naval  Station,  Baltic  to  transfer  dock  "Bruno" 
from  Kiel  to  Gdynia  see  Telegram  1447.  The  operation  will  start  on 
4  Aug.  at  0500. 

No  incidents  are  reported  in  connection  with  the  convoy  and  patrol 
operations  in  the  area  of  the  Commanding  Admiral,  Defenses,  Baltic 
Sea. 

The  Reich  Commissioner  of  Maritime  Shipping  reports  that  18  vessels 
are  riding  at  anchor  in  Riga,  6  of  which  are  waiting  for  escort. 

Twelve  more  ships  are  waiting  for  escort  in  Libau  and  Windau,  and  a 
Dutch  floating  crane  is  waiting  in  Memel.   The  Reich  Commissioner  has 
asked  the  Navy  to  issue  a  directive  to  increase  the  escort  service  or 
to  let  him  know,  should  this  be  no  longer  possible. 

Mine  operations  "Seehund  ln  and  "Seeigel  21"  have  been  started  in  the 
area  of  the  Commander,  Mine  Sweepers,  Baltic  Sea.  The  1st  Motor  Mine 
Sweeper  Flotilla  and  3  landing  barges  are  carrying  out  the  operations. 

Unfavorable  weather  restricted  subchaser  operations.   Convoys  are  pro- 
ceeding according  to  plan. 


-5- 


•  CONFIDENTIAL 
1  Aug.  1942 

Mine  operations  "Seehund  4"  and  "Seehund  5Mvare  scheduled  for  2  Aug. 


V.    Submarine  War f aye 

1.  Enemy  Situation: 

During  the  night,  the  19th  Group  was  particularly  active  in 
its  reconnaissance  operations.   Two  reports  about  submarine  sightings 
were  intercepted.   A  submarine  was  attacked  with  depth  charges  160 
miles  southwest  of  Brest.   It  is  assumed  that  the  attacker  scored  one 
hit. 

In  the  evening,  radio  intelligence  located  a  British  vessel  200  miles 
west  of  Gibraltar. 

Several  submarine  sighting  reports  from  the  American  coast  and  the  f 

West  Indies  v/ere  intercepted.   A  submarine  which  surfaced  75  miles 
northeast  of  Port  of  Spain  was  attacked  by  a  plane. 

2.  Own  Situation: 

For  the  success  of  submarine  U  "601"  see  Situation  Arctic 
Ocean. 

Group  "Pirat"  was  ordered  to  give  up  the  search  for  the  convoy  in  the 
North  Atlantic.  Eight  submarines  which  are  to  form  a  patrol  line 
from  quadrant  AJ  9411  to  BC  3465  at  0800  on  6  Aug.  are  being  assembled 
in  a  group  named  "Steinbrinck".   Submarine  tanker  U  "463"  will  re- 
fuel the  submarines  from  the  western  Atlantic  in  quadrant  DD  9455. 

Submarine  U  "155"  reports  from  the  West  Indies  that  she  sank  the 
steamer  CLAN  MACNAUGHTON  (6,088  GRT)  in  quadrant  EE  94  and  a  steamer 
of  the  DALLINGTON  COURT  class  (6,900  GRT)  in  quadrant  EE  86. 

No  reports  have  been  received  from  the  Mediterranean.   For  further 
reports  see  supplement  to  submarine  situation  in  War  Diary,  Part  B, 
Vol.  IV. 

Regarding  the  inadequate  protection  of  the  submarines  in  the  Bay  of 
Biscay,  the  Commanding  Admiral,  Submarines  reports  that,  upon  his 
urgent  demands,  submarine  defense  by  the  German  Air  Force  will  soon  be 
improved  by  reinforcing  the  units  of  the  Air  Command,  Atlantic  Coast. 
The  Commanding  Admiral,  Submarines  has  ordered  the  submarines,  when- 
ever possible,  to  remain  submerged  while  crossing  the  Bay  of  Biscay 
on  routes  other  than  the  approach  routes.   Along  the  approach  routes 
submarines  should  proceed  surfaced  on  account  of  mines,  but  only  in  the 
daytime,  because  at  night  there  is  the  added  risk  of  detection  by 
enemy  planes  while  the  submarines  would  be  unable  to  sight  the  planes 
in  time.   The  disadvantage  of  this  regulation  lies  in  the  fact  that 
the  approach  routes  are  more  exposed  when  used  during  the  daytime,  and 
the  enemy  may  mine  them.   To  combat  this  danger,  the  Commanding  Ad- 
miral, Submarines  suggests  that  the  forces  of  the  Commanding  Admiral, 
Defenses,  West  be  reinforced  by  one  flotilla  of  new  mine  sweepers.  The 
Commanding  Admiral,  Submarines  considers  such  a  reinforcement  as 
urgent  in  view  of  the  prevailing  extremely  dangerous  situation  in  the 
Bay  of  Biscay.   (See  Telegram  1345.) 


r 


-6- 


CONFIDENTIAL 
1  Aug.  1942 

The  Naval  Staff  is  investigating  whether  this  proposal  can  be  carried 
out  in  the  face  of  the  severe  shortage  of  available  forces. 


VI.   Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

During  the  day,  7  planes  were  shot  down  and  armed  recon- 
naissance was  carried  out  in  the  West  Area.   At  night,  a  small  number 
of  German  planes  carried  out  a  raid  on  Norwich,  following  which  large 
fires  were  observed  in  that  town. 

In  the  afternoon,  enemy  planes  attacked  Hannover  and  Frankfurt  on  the 
Main.   Both  towns  suffered  damage,  and  casualties  were  caused  among 
the  civilian  population.   An  air  raid  on  Wilhelmshaven  was  ineffective, 
During  the  night  of  1  Aug.,  only  isolated  enemy  flights  were  reported 
over  the  occupied  territories  of  the  West  Area. 

2.  Mediterranean  Theater: 

Our  planes  raided  Malta  with  satisfactory  results.   The  Air 
Command,  Africa  carried  out  night  raids. 

3.  Eastern  Front: 

53  enemy  planes  were  shot  down  on  31  Jul.  and  98  on  1  Aug. 

During  the  night  of  30  Jul.,  8  vessels  were  sunk  and  9  damaged  on  the 
Volga  between  Astrakhan  and  Kamyshin.   Vessels  thus  far  sunk  on  the 
Volga  total  21,000  GRT .   Due  to  this  fact,  tugs  and  barges  do  not 
move  at  night,  but  enter  harbors  in  the  evening. 


VTI.  Warfare  in  the  Mediterranean  and  in  the  Black  Sea; 

1.  Enemy  Situation,  Mediterranean: 

According  to  radio  intelligence,  submarines  are  likely  to 
leave  Gibraltar  again  in  order  to  bring  supplies  to  Malta. 

Submarines  were  sighted  south  of  Pola,  off  Cape  Matapan,  and  in  the 
vicinity  of  Corfu. 

One  destroyer,  1  fast  escort  vessel,  3  corvettes,  2  submarines,  2 
mine  layers,  2  steamers,  and  1  harbor  tanker  were  riding  at  anchor  in 
Valletta. 

On  31  Jul.  in  the  evening,  1  vessel  bound  for  Malta  was  located  by  the 
Italian  Navy  by  means  of  radar  at  a  point  140  miles  east  of  Malta. 

Small  air  reconnaissance  forces  failed  to'  observe  any  ship  movements 
in  the  Eastern  Mediterranean  on  1  Aug.   According  to  radio  intelli- 
gence, 2  cruisers  and  2  destroyers  are  assumed  to  have  departed  from 
Haifa. 

2.  Own  Situation,  Mediterranean: 

The  Admiral,  German  Naval  Command,  Italy  resumed  his  duties 

-7- 


CONFIDENTIAL 


1  Aug.  1942 


in  Rone  on  27  Jul. 


An  enemy  submarine  made  an  unsuccessful  attack  on  the  Italian  gun- 
boat CATTARO  south  of  Pola  on  31  Jul. 

3.    Transport  of  Supplies  to  North  Africa: 

The  steamer  OGADEN  entered  Tripoli  on  31  Jul.   The  steamers 
IIILANO  and  AVENTINO  entered  Benghazi  as  scheduled  and,  after  un- 
loading, started  on  their  return  voyage  to  Piraeus.   In  the  evening, 
enemy  planes  attacked  the  AVENTINO  convoy.   Otherwise,  transports  are 
proceeding  according  to  plan,  with  no  incidents  to  report. 

During  the  day  of  31  Jul.,  1,796  tons  were  unloaded  in  Tobruk. 

The  following  German  Armed  Forces  supplies  arrived  in  North  Africa  in 
July  1942: 


a.   From  Piraeus  and  Crete: 


b.   From  Italy  (either  direct- 
ly or  via  Crete) : 


206  men 
214  vehicles 
4,592  tons 

471  men 
994  vehicles 
20,91.4  tons  ' 


4.   Area  Naval  Group  South: 

Aegean  Sea: 

Nothing  to  report. 

Black  Sea: 

Enemy  Situation: 

On  31  Jul.,  photographic  reconnaissance  located  the  follow- 
ing enemy  vessels: 


In  Novorossisk: 
In  Tuapse: 


10  small-sized  coastal  vessels 

2  destroyers,  6  gunboats, 
5  motor  mine  sweepers,  9  PT  boats, 
1  submarine,  1  tanker,  10  steamers 
and  a  number  of  small  vessels 


Enemy  activity  leads  to  the  conclusion  that  he  Is  aware  that  our 
forces  are  being  assembled  for  the  Kerch  breakthrough. 

On  30  Jul.,  planes  raided  the  harbor  and  roadstead  of  Ivanbaba.  Dur- 
ing the  night  of  30  Jul.,  naval  forces,  presumably  3  to  5  destroyers 
or  fast  gunboats,  fired  at  vessels  lying  off  the  coast  and  at  coastal 
batteries  in  the  area  of  Ivanbaba.  When  shelled  from  land,  they 
turned  southeastward.  They  are  presumed  to  have  laid  mines.   On 
1  Aug.,  at  0400,  2  PT  boats  penetrated  into  the  bay  between  Ilich 
and  Ivanbaba  and  launched  a  torpedo  attack  against  the  landing  barges 
anchored  In  that  area.  During  the  night  of  30  Jul.,  2  mines  were 
observed  dropped  in  the  Strait  of  Kerch  off  Yeltigen  and  1  off  Ak 
Burnu. 


-8- 


CONFIDENTIAL 
1  Aug.  1942 

Own  Situation: 

Only  slight  splinter  damage  was  inflicted  on  the  motor  mine 
sweepers  in  Ivanbaba  during  the  enemy  air  raid  in  the  evening  of  30 
Jul.  The  motor  mine  sweeper  R  "163"  is  out  of  commission.   On  31  Jul. 
the  PT  boat  route  was  searched  for  mines.   During  the  attack  by 
enemy  PT  boats  in  the  morning  of  1  Aug.,  the  landing  barge  MFP  "334" 
was  badly* damaged  by  a  torpedo  and  grounded.   Attempts  are  being  made 
to  lay  a  net  barrage  off  Ivanbaba,   Intensified  enemy  activity  is 
quite  effective,  due  to  our  lack  of  anti-aircraft  protection,  air 
reconnaissance,  and  fighter  protection. 

It  is  planned  to  have  4  boats  of  the  1st  PT  Boat  Flotilla  lay  river 
mines  type  C  in  the  southern  approaches  of  the  Kerch  Strait  on  the 
night  of  1  Aug. 

Special  Items: 

a.  In  reply  to  an  inquiry  by  the  Naval  Staff  Operations  Di- 
vision (see  War  Diary  18  Jul.),  the  Italian  Naval  Staff  has  declared 
itself  basically  in  agreement  with  the  proposed  transfer  to  the 
Caspian  Sea  of  part  of  the  Italian  forces  (surface  vessels)  employed 
at  present  in  the  Black  Sea.   The  Italian  Naval  Staff  is,  however, 
unable  to  supply  any  further  vessels  for  the  Black  Sea  area. 

Naval  Group  South,  the  Admiral,  Black  Sea,  and  the  Quartermaster 
Division  of  the  Naval  Staff  are  being  notified  to  this  effect  via 
Telegram  l/Skl  18741/42  Gkdos.   Copy  in  War  Diary,  Part  C,  Vol. 
XIV  a. 

b.  According  to  the  report  from  Group  South,  Antonescu  has  ex- 
pressed his  agreement,  for  the  time  being  orally,  to  the  removal  of 
battery  "Tirpitz",  and  has  requested  that  1  medium  railway  artillery 
battery  be  emplaced  in  Constanta.   Group  South,  in  agreement  with  the 
Naval  Staff  Quartermaster  Division,  Fleet  Branch,  is  endorsing  this 
measure.   In  the  Group's  opinion,  a  further  favorable  development  of 
the  Army  operations  will  make  it  unnecessary  to  transfer  battery 
"Tirpitz"  to  the  Russian  Black  Sea  area,  and  the  20.3  cm  battery 
captured  at  Ochakov  will  suffice  for  Sevastopol.   A  written  confirma- 
tion by  Antonescu  has  been  promised. 

The  Naval  Staff  Quartermaster  Division  is  taking  "up  the 
matter  in  accordance  with  the  directive  by  the  Commander 
in  Chief,  Navy.   (See  War  Diary  20  and  21  Jul.) 


VIII.  Situation  East  Asia 
Nothing  to  report. 


-9- 


CONFIDENTIAL 
1  Aug.    1942 

DC,  Army  Situation 

1.  Russian  Front; 

Army  Group  A: 

Combat  activities  against'  reinforced  enemy  rear  guards  are 
reported  from  south  of  the  Yelets  sector.   On  the  remaining  sectors 
of  the  Caucasian  front,  the  advance  of  our  troops  continues  accord- 
ing to  plan.   Our  forces  occupied  Remontnaya  at  the  point  where  the 
railway  crosses  the  river  Sal. 

Army  Group  B: 

Our  troops  reached  the  river  Chir  northwest  of  Chirskaya 
and  the  river  Don  north  of  Kalach.   Near  Serafimovich,  Italian  troops 
threw  the  enemy  back  as  far  as  the  Don  river. 

Central  Army  Group: 

On  the  entire  9th  Army  sector  from  Rzhev  up  to  Byeloi,  the 
enemy  carried  out  strong  containing  attacks  which  resulted  in  isolated 
penetrations  and  set  off  counterattacks. 

Northern  Army  Group; 

No  noteworthy  fighting  has  been  reported. 

2.  Finnish  Front; 

Nothing  noteworthy  occurred. 

3.  North  Africa; 

No  fighting  to  report.  Enemy  planes  are  intensifying  their 
attacks  on  our  troops. 

{HKHHHHHHHKBHMKMKHHHHKHHHt 


% 


-10- 


CONFIDENTIAL 

2  Aug.  1942 
Sunday 

Items  of  Political  Importance 

The  attitude  of  the  U.S.  Government  in  the  question  of  the  Second 
Front  in  Europe  is  being  influenced  to  an  increasing  extent  by  the 
impending  elections.   The  Daily  Mall  reports  that,  strictly  speaking, 
there  is  no  enthusiasm  whatsoever  in  the  United  States  for  the 
establishment  of  a  Second  Front,  since  every  sensible  person  can  see 
that  it  is  an  impossible  demand  in  view  of  the  shortage  of  shipping 
space.   In  connection  with  a  Second  Front,  American  newspapers  dis- 
cuss the  question  of  a  unified  command,  for  which  they  mention  in  the 
first  place  De  Gaulle,  then  MacArthur,  Marshall,  and  MacNaughton.   In 
addition  to  the  objections  already  raised  against  a  Western  Front, 
they  point  to  the  fact  that  even  Hitler  did  not  risk  an  invasion. 
Among  the  more  important  newspapers  in  Great  Britain,  the  Times  and 
the  News  Chronicle  alone  continue  to  advocate  the  Second  Front.   In 
so  doing,  the  Times  places  special  emphasis  on  the  dangerous  effects 
which  the  failure  to  relieve  the  Soviets  might  have  on  the  political 
situation  at  home.  All  the  other  press  organs  have  shifted  com- 
pletely over  to  the  line  apparently  dictated  by  the  British  Govern- 
ment . 

As  for  the  enemy's  shipping  situation,  an  increasing  number  of 
American  public  officials  point  to  the  decisive  military  importance 
of  this  problem.   Contrary  to  the  more  frequent  expressions  of 
apprehension  that  the  speed  in  building  new  ships  cannot  keep  pace 
with  the  ship  losses,  the  U.S.  Navy  Department  states  that  during  the 
month  of  July  the  U.S.  shipyards  completed  71  vessels  totalling 
790,000  tons.   (These  are  not  GRT.) 

According  to  United  States  News,  German  reports  about  sinking  of 
ships  in  American  waters  are  not  far  from  the  truth. 


Situation  2  Aug.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

South  Atlantic; 

A  British  steamer  sent  an  SSS  signal  reporting  sighting  a 
submarine  70  miles  east  of  Lagos. 

Indian  Ocean : 

The  Consulate  in  Lourenco  Marques  reports  that  2  convoys 
are  scheduled  to  leave  Durban  on  4  Aug.   According  to  an  agent's  re- 
port, 2  convoys  of  35  to  40  ships  each  are  scheduled  to  leave  Cape- 
town for  Egypt  every  month.   An  agent  in  the  service  of  the  same 
Consulate  reports  that  the  auxiliary  cruiser  CARNARVON  CASTLE  was 
sunk. 

No  other  facts  are  known  to  us  in  connection  with  this 
sinking. 


-11- 


CONFIDENTIAL 
2  Aug.  1942 

2.    Own  Situation: 

No  reports  have  been  received  about  our  vessels. 

Blockade-runner  V7ESERLAND  was  ordered  by  the  Naval  Staff  Operations 
Division,  Merchant  Ships,  as  per  1/Skl.I'K  1292/42  Gkdos,  Chefs,  of 
18  Jul.  1942,  to  proceed  to  Japan  by  way  of  Cape  of  Good  Hope  or,  if 
necessary,  by  way  of  Cape  Horn.   Copy  no'j  4  in  War  Diary,  Part  C, 
Vol.  I. 


II.   Situation  West  Area 

1.  Enemy  Situation; 

Interrogation  of  the  crew  of  the  motor  gunboat  n328",  which 
was  sunk  in  the  Channel  on  21  Jul.,  revealed  the  following:   In  July 
there  were  stationed  in  Dover   1  motor  gunboat  division  of  4  boat3, 

1  motor  torpedo  boat  flotilla,  and  1  mine  layer  division,  but  no  de- 
stroyers.  On  21  or  22  Jul.,  motor  torpedo  boat  "201w  was  sunk  during 
an  engagement  at  0100.   German  air  raids  on  Birmingham  in  June  1942 
did  considerable  damage.   Less  successful  is  the  shelling  of  the  long- 
range  battery  on  the  Channel  coast.   The  radio  station  southwest  of 
Dover  was  presumably  destroyed  prior  to  April  1942.   So  far,  gunfire 
against  convoys  consisting  of  small  vessels  in  the  Channel  has  proved 
ineffective.   For  details  see  Telegram  1800. 

2.  Own  Situation: 
Atlantic  Coast: 

One  mine  was  swept  by  a  mine-sweeping  plane  off  Lorient. 

Our  forces  started  laying  ground  mines  with  electric  firing  devices 
north  and  south  of  the  entrance  to  the  naval  harbor  of  Brest.  For 
the  corresponding  message  by  the  Admiral,  French  Coast,  see  Telegram 
1640. 

Channel  Coast: 

At  0015,  the  battery  group  at  Le  Touquet  opened  fire  on  6 
enemy  PT  boats  that  had  been  located.  The  boats  retaliated  with 
counterfire  and  turned  away. 

Mine  operations  "Masuren"  and  "Samland"  have  been  executed  according 
to  plan  from  Cherbourg.  Remote  escort  was  furnished  by  the  2nd  PT 
Boat  Flotilla  consisting  of  7  boats.   At  0242,  the  8th  Mine  Sweeper 
Flotilla,  while  approaching  Cherbourg,  had  an  engagement  with  8  to 
10  enemy  motor  gunboats  and  motor  torpedo  boats  and  1  light  gun 
carrier.  Two  enemy  vessels  were  reported  as  probably  destroyed.  Our 
casualties  were  light.   Naval  Commands  at  Cherbourg  were  on  second 
degree  alert  from  0300  to  0400.   The  2nd  PT  Boat  Flotilla  has 
arrived  at  Cherbourg.   The.  3rd  Torpedo  Boat  Flotilla  has  entered 
Lezardrieux  and  is  going  to  transfer  to  St.  Malo  during  the  night  of 

2  Aug.   In  view  of  the  fact  that  after  last  night's  operation  torpedo 
boat  T  "4"  is  again  out  of  commission,  Group  West  repeats  its  urgent 
request  for  transfer  of  an  extra  boat  to  the  West  Area. 


♦ 


-12- 


CONFIDENTIAL 
2  Aug.  1942 

The  Naval  Staff  recognizes  the  need  for  such  a  measure.   Further 
torpedo  boats  will  be  allotted  to  Group  West  as  soon  as  possible. 
At  present*  no  extra  boats  are  available.   Allocations  of  boats  for 
torpedo  training,  as  well  as  for  open  water  firing  in  Trondheim,  are 
indispensable  for  submarine  warfare. 

See  Telegram  1818  for  communications  notifying  Group  West,  Group 
North,  the  Fleet,  and  the  Commander,  Destroyers  to  this  effect. 

Route  "Herz"  between  points  232  and  234  has  been  temporarily  closed 
on  account  of  mines. 

For  report  of  the  Admiral,  French  Coast  concerning  the  laying  of  a 
mine  field  in  the  outer  approaches  to  Boulogne,  see  Telegram  1430. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea.: 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

Mine  operation  ""Alba"  (barrage  105)  continued  according  to 
plan.   Work  on  mine  field  3  was  completed  (see  Telegram  2245).   Mine 
detonating  vessels  succeeded  in  removing  mines  off  Egmond-aan-Zee, 
Den  Helder,  Terschelling,  and  Norderney. 

The  6  vessels  of  the  2nd  Motor  Mine  Sweeper  Flotilla  have  completed 
transfer  from  Ostend  to  Flushing  and  the  other  6  have  transferred 
from  Flushing  to  Dunkirk. 

On'  the  afternoon  of  2  Aug.,  enemy  planes  were  active  over  Scheveningen 
and  the  German  Bight  between  Norderney  and  Foehr.   Naval  anti-air- 
craft guns  shot  down  2  enemy  planes  during  the  raid  on  Scheveningen. 

2.  Norway,  Arctic  Ocean: 

Enemy  Situation: 

Photographic  reconnaissance  over  Iceland  located  1  battle- 
ship of  the  KING  GEORGE  V  class,  1  heavy  cruiser,  apparently  of  the 
CUMBERLAND  class,  1  DIDO-class  cruiser,  7  destroyers,  41  steamers, 
and  3  tankers  (totalling  approximately  185,000  to  190,000  GRT)  in 
Hval  Fjord,  and  14  steamers  totalling  about  11,500  GRT  in. the 
Reykjavik  roadstead. 

Evidently  the  assembly  of  convoy  PQ,  18  has  been  com- 
pleted. 

The  Japanese  Navy  reports  through  the  Naval  Attache  in  Berlin  that  on 
26  Jul.  a  Russian  convoy  of  unknown  strength  departed  from  Petro- 
pavlovsk  via  the  northern  route. 

This  substantiates  the  reports  so  far  received. 


-13- 


CONFIDENTIAL 
2  Aug.  1942 

Own  Situation! 

There  is  nothing  particular  to  report  from  the  area  of  the 
Commanding  Admiral,  Norway. 

Admiral  Schmundt  reports  that  the  Admiral,  Arctic  Ocean  has  sur- 
rendered his  duties  to  Rear  Admiral  Thiele. 

No  noteworthy  reports  have  been  received  from  the  submarines  in  the 
Arctic  Ocean. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation; 
Nothing  to  report . 

2.  Own  Situation: 

Mine  operation  "Duesseldorf "  (experimental  barrage  of  rack 
mines  type  A  in  the  Skagerrak)  is  being  carried  out  by  submarine  U 
"119". 

Mine-detonating  vessels  serving  as  escorts  swept  1  ground  mine  off 
Korsoer.  Another  mine  was  swept  by  a  Danish  torpedo  boat  along  the 
Nyborg  ferry  route. 

Group  North  points  out  to  the  Commanding  Admiral,  Defenses,  Baltic 
Sea  and  Naval  Station,  Baltic  that  increased  watchfulness  is  necessary 
due  to  the  facts  that  the  enemy  is  dropping  so  few  mines  in  the  area 
of  the  Commanding  Admiral,  Defenses,  Baltic  Sea,  particularly  in  the 
Sound,  and  that  an  enemy  directive  has  become  known  concerning  the 
escape  of  Russian  submarines  from  the  Baltic  Sea.   (See  Telegram 
1712.) 

In  the  area  of  the  Commander,  Mine  Sweepers,  Baltic  Sea,  mine  opera- 
tions "Seehund  I"  and  "Seeigel  XXI"  were  broken  off  because  of  bad 
weather  which  also  prevented  mine-sweeping  operations. 

Mine  sweeper  M  "16"  ran  aground  in  the  vicinity  of  Porkkala.  One 
drifter  of  the  coastal  patrol  flotilla  was  hit  by  a  mine  north  of 
Aegna,  probably  in  the  "Nashorn  XII"  minefield,  and  sank  after  being 
towed  into  Reval. 

Transports  are  proceeding  according  to  plan. 

The  Commander,  Mine  Sweepers,  Baltic  Sea  reports  that  the  convoy 
situation  is  extremely  critical  due  to  the  shortage  of  escort  vessels. 
Only  if  the  order  requiring  compulsory  escort  is  revoked,  can  the 
congestion  of  ships  in  Riga  and  Libau  be  relieved.  The  risk  of  pro- 
ceeding unescorted  as  suggested  is  considerably  reduced  as  long  as, 
on  calm  days,  vessels  of  the  31st  Mine  Sweeper  Flotilla  occupy 
positions  along  route  "Braun".   (See  Telegram  2020.) 

In  accordance  with  the  suggestion  of  the  Commanding  Admiral,  Baltic 
Countries,  the  Naval  Staff  Operations  Division  has  proposed  to  the 
Air  Force  Operations  Staff  that  one  bomber  squadron  be  supplied  for 
the  Gulf  of  Finland.   Due  to  the  shortage  of  planes,  the  Air  Force  is 


-14- 


CONFIDENTIAL 


2  Aug.  1942 


unable  to  comply  with  this  suggestion.   It  intends  to  carry  out  the 
bombing  missions  in  that  area  as  they  come  up,  weather  and  ground 
conditions  permitting. 

The  Naval  Staff  is  notifying  Group  North  and  the  Commanding  Admiral, 
Baltic  Countries  accordingly. 


V.    Submarine  Warfare 

1.  •  Enemy  Situation: 

According  to  intelligence  reports  from  Spain,  a  convoy  with 
troops  and  materiel  is  expected  to  arrive  in  Gibraltar  between  5  and 
0  Aug.   This  is  apparently  the  convoy  from  the  U.S.  en  route  to 
Alexandria  which  has  already  been  announced.   (See  War  Diary  28  Jul.) 

Reports  on  submarine  attacks  in  the  Trinidad  area  and  in  the  Florida 
Strait  were  intercepted. 

2.  Own  Situation;    t 

At  0950,  submarine  U  "552"  established  contact  with  a  con- 
voy in  quadrant  BC  5955.   All  submarines  of  the  former  groups  "Wolf" 
and  "Pirat"  have  received  orders  to  attack  that  convoy.   Three  more 
boats  made  temporary  contact  with  the  convoy  in  the  course  of  the 
day.   Submarine  IT  "552"  reports  that  she  has  torpedoed  2  steamers 
totalling  16,000-  GRT.   The  operation  is  being  continued. 

4 

Two  submarines  stationed  in  the  Reykjavik  area  are  being  notified 
that  convoy  PQ,  18  will  probably  depart  from  Hvalsund  during  the  first 
week  of  August.   Attempts  should  be  made  to  intercept  the  convoy  in 
quadrant  AE  53-59. 

Submarine  "Kirschbluete"  has  reported  her  position  and  is  expected  to 
reach  the  center  of  quadrant  3F  4790  on  5  Aug.  The  boat  is  bound  for 
Lorient. 

No  successes  have  been  reported  by  the  submarines  off  the  American 
East  Coast. 

In  the  West  Indies,  submarine  U  "160"  is  at  the  moment  in  contact  with 
a  convoy  of  6  to  8  large  steamers  In  quadrant  EE  8772.  Anti-aircraft 
fire  is  forcing  the  submarine  to  withdraw.   She  reports  having  sunk  • 
the  steamer  TREMINNARD  (4,694  GRT)  and  taken  aboard  the  captain. 

Submarine  U  "509"  was  damaged  by  aircraft  bombs  in  quadrant  DM  1732 
and  withdrew  for  repairs. 

Strong  defense  action  prevented  submarine  U  "134"  from  firing  at  a 
convoy  of  6  steamers  in  quadrant  DM  6439. 

Increased  tanker  traffic  has  been  observed  between  Trinidad  and  South 
American  harbors. 

Submarine  U  "565"  sank  another  auxiliary  sailing  vessel  in  the 
Mediterranean. 

For  further  details  see  supplement  to  the  submarine  situation  in  War 
Diary,  Part  B,  Vol.  IV. 


-15- 


'  CONFIDENTIAL 
2  Aug.  1942 

VI.   Aerial  Warfare 

1.  British  Isles  and  Vicinity1 

During  the  day,  Bridgeport,  York,  Lincoln,  and  other 
localities  were  bombed  with  observed  success.   On  the  night  of  2  Aug. 
our  planes  raided  Bradford. 

One  FW  200  raided  and  obviously  damaged  the  radio  station  Hoefn  on 
Iceland. 

Bad  weather  (thunderstorm)  limited  reconnaissance  operations  over  the 
sea  area  around  the  British  Isles. 

2.  Mediterranean  Theater; 
Our  planes  raided  Malta. 

3.  Eastern  Front: 

Photographic  reconnaissance  of  the  Volga  river  located  77 
freight  barges,  17  motor  barges,  8  paddle  tugs,  and  small  vessels  in 
Kuibyshev.   More  than  60  cargo  vessels  were  counted  between 
Kuibyshev  and  Marks. 

No  further  reports  have  been  received. 


VII.  Warfare  in  the  Mediterranean  and  in  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 
Nothing  to  report. 

2.  Own  Situation,  Mediterranean: 

During  the  night  of  31  Jul.,  bombs  were  dropped  on  the 
motor  ship  M0NVIS0  in  Navarino.   The  raid  was  ineffective.   During 
that  night,  as  well  as  on  the  night  of  1  Aug.,  enemy  planes  raided 
Tobruk.   The  tug  MAX  BEHRENDT  was  again  damaged.   The  Italian  tug 
ALATO  suffered  heavy  damage.   As  a  result  of  enemy  raids  on  Bardia 
on  the  night  of  1  Aug.,  the  motor  mine  sweeper  R  "9"  and  the  tank 
landing  vessels  F  "347'*  and  "356"  burned  up  and  sank.  .  The  motor  mine 
sweeper  R  "11"  was  badly  damaged  and  had  to  be  brought  ashore. 
Casualties  were  light. 

The  enemy's  superiority  in  the  air  is  really  making 
itself  felt. 

3.  Transport  of  Supplies  to  North  Africa; 

The  steamer  ISTRIA  entered  Tripoli  on  1  Aug.   On  the  even- 
ing of  2  Aug.,  enemy  planes  attacked  the  convoy  of  the  steamer 
TERGESTEA  proceeding  from  Patras  to  Benghazi.   Details  are  still 
lacking.   Otherwise,  the  transport  of  supplies  proceeded  without  in- 
cidents. 

The  German  Commanding  Officer,  Supply  and  Transports,  Italy  and 
Italian  authorities  have  agreed  on  the  following  ba^lc  program  for  the 


-16- 


CONFIDENTIAL 
2  Aug.  1942 

transport  of  supplies: 

Supplies  to  .be  brought  from  the  Italian  area: 

a.  To  Tobruk  -  2  large  vessels  per  week,  with  16^,000  tons  of 
German  and  16,000  tons  of  Italian  supplies  per  month. 

b.  To  Benghazi  -  4  ships  every  week,  with  16,000  tons  of 
German  cargo  per  month. 

c.  Of  the  above  (paragraph  b.),  8,000  tons  are  to  be  shipped 
every  month  to  the  Tobruk-Marsa  Matruh  area  by  coastal  vessels. 

4.   Area  Naval  Group  South: 

Aegean  Sea: 

Nothing  to  report. 

Black  Sear 

Enemy  Situation: 

Radio  intelligence  reports  only  isolated  movements  of  naval 
forces  on  1  and  2  Aug.   In  addition  to  8  submarines,  1  flotilla 
leader  and  1  destroyer  were  observed  at  sea. 

On  30  Jul.  and  on  the  morning  of  31  Jul.,  2  gunboats  shelled 
Kagalnik  on  the  Don  delta.   On  31  Jul.,  in  the  evening,  a  PT  boat 
passed  through  the  Kerch  Strait. 

Own  Situation: 

No  success  was  scored  when  our  artillery  fired  at  the 
enemy  PT  boat  in  the  Kerch  Strait. 

On  the  forenoon  of  1  Aug.,  the  1st  Landing  Flotilla,  composed  of  10 
landing  barges,  arrived  at  Sevastopol.   Three  of  the  barges  will  re- 
main there,  while  7  transferred  at  noon  to  Balaklava.   From  Balaklava, 
5  of  these  barges  are  to  break  through  the  Kerch  Strait  during  .the 
night  of  2  Aug.   The  1st  Landing  Flotilla  will  cover  the  operation 
in  southerly  direction. 

Three  Italian  subchasers  arrived  in  Yalta  on  31  Jul. 

Convoy  operations  in  the  Black  Sea  are  proceeding  according  to  plan. 
Transport  of  supplies  In  the  Sea  of  Azov  will  be  feasible  as  soon  as 
the  channels  have  been  searched  as  far  as  Azov. 


VIII.  Situation  East  Asia 

On  1  Aug.,  Sydney  broadcast  another  submarine  warning  for  an 
area  50  miles  south  of  that  harbor. 


-17- 


CONFIDENTIAL 
2  Aug.  1942 

IX.   Army  Situation 

1.  Russian  Front : 

Army  Group  At 

Despite  Increased  resistance,  our  offensive  in  the 
Kushchevskaya  area  continued  to  gain  ground.  Following  the  enemy 
retreating  in  a  southeasterly  direction,  our  infantry  and  panzer 
divisions  reached  the  line  Yekaterlnovskaya-Dmitriyevskaya- 
Pregradnoye  east  of  Kushchevka.   East  and  northeast  of  Salsk  the 
mopping-up  of  the  Yegorlyk  sector  continues. 

Army  Group  B; 

Kotelnikovo  has  been  captured.   North  and  northwest  of 
Kalach,  the  enemy  is  carrying  out  heavy  armored  attacks  on  a  wide 
front.   For  the  major  part,  these  attacks  have  been  repulsed.   In  the 
Don  river  bend  southeast  of  Kletskaya,  our  planes  counterattacked  the 
enemy  tanks.   Sixty  tanks  were  destroyed.   The  Italian  mobile  di-  a 

vision  repelled  enemy  attacks  in  the  area  south  of  Serafimovieh.  The 
enemy  still  holds  isolated  positions  west  of  the  Don*  Enemy  attacks 
near  Boguchar,  Svoboda,  and  south  of  Yelets  were  repulsed. 

Central  Army  Group; 

Heavy  enemy  attacks  in  the  Rzhev  area  continue  with  un- 
diminished intensity.  Enemy  attacks  are  likewise  reported  from  the 
area  north  and  south  of  Byeloi. 

Northern  Army  Group: 

Our  offensive  on  the  Volkhov  front  is  making  good  progress. 
South  of  Leningrad,  the  enemy  succeeded  in  penetrating  our  lines 
s  omewhat . 

2.  Finnish  Front: 

Assault  detachments  and  reconnaissance  patrols  were  active 
on  the  southeastern  front. 

3 .  North  Africa f  | 
Reconnaissance  and  artillery  activity. 


-18- 


CONFIDENTIAL 
3  Aug.  1942 

Items  of  Political  Importance 

In  connection  with  the  question  of  the  Second  Front  in  Europe ,  diplo- 
matic circles  abroad  interpret  Franco's  and  Suner's  intention  to  take 
a  few  weeks'  vacation  as  a  sign  that  the  Spanish  government,  too, 
discounts  the  possibility  of  a  European  invasion  in  the  very  near 
future . 

The  Observer  is  of  the  opinion  that  very  heavy  air  raids  on  Germany, 
such  as  have  frequently  been  demanded,  can  only  serve  as  a  prepara- 
tion but  not  as  a  substitute  for  a  Second  Front. 

For  press  opinions  from  Great  Britain  and  America  see  Political  Re- 
view No.  179,  Paragraph  1. 

India: 

The  Executive  Committee  of  the  Congress  Party  is  reported  to  have 
asked  Churchill  for  assurance  that  the  Cripps  proposals  will  not  be 
withdrawn  after  the  war.   Gandhi  is  expected  to  meet  with  the  Moslem 
leader  JInnah.   In  a  statement  in  the  Hari  jan ,  Gandhi  said  that  a 
free  India  could  play  a  decisive  part  in  the  war  on  the  side  of  the' 
Allies. 

Canada; 

Canada  will  maintain  her  diplomatic  relations  v/ith  France  although, 
according  to  the  statement  of  her  Prime  Minister,  Canada  can  have  no 
respect  for  Laval  as  a  mouthpiece  of  Germany. 

Turkey; 

A  newspaper  article  by  Representative  Attay,  dealing  with  the  famine 
in  Europe  during  the  coming  winter,  expresses  the  view  that  the  Allies 
are  the  ones  who  have  the  main  power  to  decide  whether  there  will  be 
peace  or  war,  but  there  are  no  indications  among  the  Allies  that  hopes 
for  peace  which  have  been  aroused  by  the  German  victories  in  Russia 
are  justified. 

Argen  tina; 

The  British  press  is  trying  to  frighten  Argentina  with  the  specter  of 
isolation.   As  an  argument,  the  press  points  to  a  change  in  orienta- 
tion of  the  foreign  policy  in  Chile. 

Japan ; 

Military  circles  in  Chungking  expect  that  Japanese  hostilities 
against  Russia  will  start  during  the  second  half  of  August. 

China: 

The  U.S.  representative  has  assured  the  government  that  military  aid 
to  China  will  be  increased. 


■19- 


CONFIDENTIAL 
3  Aug.  1942 

Conference  on  the  Situation  with  t,he  Chief,  Naval  Staff 
In  a  Very  Restricted  Circle: 

I.  On  30  Jul.,  the  Naval  Staff,  complying  with  a  request  of  Group 
North  (see  V/ar  Diary  26  Jul.),  asked  the  Armed  Forces  High  Command, 
Operations  Staff,  for  approval  of  the  transfer  of  German  coastal 
mine-laying  boats  and  Italian  submarine  chasers  from  Lake  Ladoga  to 
the  Gulf  of  Finland.   FJpi» copy  see  1/Skl  I  op  1467/42  Gkdos.  Chefs, 
in  V/ar  Diary,  Part  C,  Vol.  III.   Surprisingly,  the  Armed  Forces  High 
Command,  Operations  Staff  has  denied  the  request,  giving  as  a  reason 
the  fact  that  the  Finnish  Marshal  considers  a  transfer  of  the  German 
and  Italian  boats  from  Lake  Ladoga  undesirable. 

It  is  possible  that  the  Armed  Forces  High  Command, 
Operations  Staff  wants  to  keep  these  vessels  ready  for 
use  in  our  operation  against  Leningrad  in  September 
when  the  enemy  may  again  use  large  vessels  which  could 
also  be  effectively  attacked  with  mines. 

II.  Showing  the  submarine  chart  to  indicate  the  mines  laid  in  the 
Chesapeake  Bay,  the  Chief,  Naval  Staff  points  out  that  the  Portuguese 
steamer  NYASSA  carrying  German  passengers  will  leave  Baltimore  on  8 
Aug.   This  fact  is  known  to  the  Naval  Staff,  Operations  Division,  and 
it  has  already  communicated  to  the  Foreign  Office  those  routes  from 
Baltimore  which  are  considered  safe.  While  mentioning  the  steamer 
NYASSA,  the  Naval  Staff,  Operations  Division  will  add  a  reminder  that 
the  Portuguese  government,  too,  should  be  informed  about  these  routes. 

III.  The  Chief,  Communications  Division,  Naval  Staff  reports  on  the 
installation  of  radar  equipment  in  operational  submarines  and  the 
assignment  of  enlisted  personnel  of  the  Communications  Equipment  Ex- 
perimental Command  to  aid  the  work  in  the  shipyards. 

IV.  The  Chief,  Quartermaster  Division,  Naval  Staff  reports  that  the 
Italian  Navy  has  made  another  request  for  25,000  tons  of  fuel  oil.  In 
the  opinion  of  the  Chief,  Quartermaster  Division,  the  Italian  Navy  has 
been  receiving  50,000  to  60,000  tons  from  Rumania  every  month  during 
the  last  few  months  according  to  schedule.   Our  situation  does  not 
permit  any  further  allocations  from  the  Navy's  quota.   For  this 
reason,  the  inquiry  of  the  Armed  Forces  High  Command  in  connection 
with  this  Italian  request  has  been  answered  in  the  negative. 

The  Chief,  Naval  Staff  agrees. 

From  3  to  6  Aug.,  the  Chief,  Naval  Staff  will  visit  France  in  order 
to  inspect  the  defenses  against  enemy  landings  in  that  country.  The 
Deputy  to  the  Chief  of  Operations  Branch  will  participate  in  the  in- 
spection tour  as  representative  of  the  Operations  Division. 


Special  Items: 

I.   Basing  its  considerations  on  the  experience  gained  in  the  war,  as 
well  as  on  the  conclusions  drawn  from  the  demonstration  of  landing 
vessels  to  a  Japanese  commission,  the  Naval  Staff,  Operations  Division 
has  reexamined  the  plans  and  objectives  of  the  Navy  in  this  field. 


-20- 


CONFIDENTIAL 
3  Aug.  1942 

The  results  have  been  transmitted  to  the  Naval  Staff,  Quartermaster 
Division,  -with  the  request  to  determine  and  make  known  the  respective 
competencies  of  Army  and  Navy  according  to  the  problems  posed,  and  to 
develop  in  cooperation  with  the  Army,  the  plans  and  further  measures 
in  line  with  these  propositions. 

For  copy  see  1/Skl  I  opa  18329/42  Gkdos.  in  War  Diary,  Part  B,  Vol.V. 

II.   On' 20  Jul.,  Group  North  submitted  its  final  report  on  operation 
"Roes sel sprung". 

The  Naval  Staff  agrees  in  general  with  the  conclusions  laid  down  in 
this  report  and  remarks  as  follows: 

1.  It  has  been  established  that  the  convoy  was  broken  up  be- 
fore our  naval  forces  appeared  on  the  scene.   The  reasons  are  assumed 
to  be  the  following: 

a.  The  British  do  not  send  their  heavy  vessels  into  areas  con- 
trolled by  our  bomber  forces  as  long  as  attack  conditions  for  the 
latter  are  favorable.   For  this  reason  they  had  to  leave  the  tactical 
protection  of  the  convoy  to  the  cruiser  group.   In  view  of  the  con- 
centrated air  attack,  the  cruisers  were  unable  to  give  the  ships  the 
amount  of  anti-aircraft  protection  necessary  to  hold  the  convoy  to- 
gether.  Poor  convoy  discipline  on  the  part  of  the  numerous  American 
steamers  might  likewise  have  been  a  factor.   Thus,  under  the  blows 

of  the  attack  by  German  planes,  the  convoy  disintegrated  more  and  more 
Since  the  fuel  reserves. of  the  cruisers  were  probably  not  adequate 
for  prolonged  escort,  and  since  after  the  disintegration  of  the  con- 
voy the  usefulness  of  the  cruisers  was  outweighed  by  the  danger  from 
submarines  and  planes,  the  cruisers  soon  left  the  convoy. 

The  destroyers  alone,  which  according  to  prisoners'  statements,  re- 
fueled during  their  voyage  from  the  tankers  in  the  convoy,  did  not 
suffice  to  protect  the  dispersed  ships  which  thus  became  the  prey  of 
the  submarines  and  the  airplanes. 

b.  Inadequate  fuel  was  probably  another  factor  in  determining 
the  action  of  the  heavy  ships.   It  is  unlikely  that  these  ships  were 
able  to  refuel 'at  sea.   Thus,  since  they  had  to  return  home,  these 
ships  had  reached  the  limit  of  their  range  on  5  Jul. 

2.  The  route  chosen  by  convoys  sailing  from  Iceland  to  the 
Russian  harbors  in  the  Arctic  Ocean  will  at  all  times  be  as  far  away 
as  possible  from  the  mainland  coast,  following  the  ice  boundary.   The 
fact  that  during  the  coming  months  the  ice  boundary  will  shift  farther 
to  the  north  will  reduce  the  prospect  of  successful  attacks  by  our 
Air  Force.   On  the  other  hand,  the  route  which  the  enemy  ships  will 
have  to  follow  will  be  considerably  longer,  so  that  the  endurance  of 
the  escort  forces  will  have  to  be  even  greater  than  before.   If  the 
enemy  succeeds  in  increasing  the  speed  of  the  convoys,  the  higher 
average  speed,  which  is  more  economical  for  the  naval  forces,  will 
partly  compensate  for  the  greater  distance.   Nevertheless,  the  enemy 
will  be  compelled  to  undertake  measures  to  arrange  either  for  reliev- 
ing the  escort  forces  or  for  refueling  them.   One  such  possibility  is 
offered  by  the  circumstance  that  the  coast  of  Spitsbergen,  with  its 
anchorages,  is  ice-free. 

The  4  destroyers  sighted  by  our  air  reconnaissance  in  the  area  120 
miles  southwest  of  Spitsbergen  on  22  Jul.  1942  permit  the  assumption 
that  they  were  sent  to  take  over  convoys  coming  from  the  east. 


-21- 


CONFIDENTIAL 
3  Aug.  1942 

3.  In  any  case,  we  have  to  county  with  the  fact  that,  should 
any  further  convoys  pass  by  in  August   f, 

a.  They  will  be  within  the  range  of  our  bomber  forces  for  only 
a  short  distance 

b.  They  will  not  :^fesperse  again,  contrary  to  all  rules,  before 
they  are  in  safety     •^  \ 

It  nay  therefore  be  assumed  that  the  chances  for  our  submarines  and 
air  forces  will  no  longer  be  as  good  as  they  were  during  the  attack 
on  convoy  PQ  17.  Thus,  the  significance  of  the  naval  forces  in  de- 
stroying enemy  supply  vessels  remains  unaffected. 

4.  Prom  early  September  on,  due  to  the  longer  hours  of  dark- 
ness, conditions  for  submarine  operations  will  again  improve  for  a 
short  period,  until  stormy  weather  and  ice  will  make  submarine  attacks 
too  difficult  and,  in  the  end,  impossible. 

The  naval  representatives  at  the  Fuehrer  Headquarters, 
at  the  Armed  Forces  High  Command,  Operations  Staff, 
at  the  Air  Force  Operations  Staff,  and  at  the  General 
Staff,  Army  High  Command  have  been  advised  of  the  re- 
port of  Group  North  and  of  the  Naval  Staff's  reaction. 

See  1/Skl  I  op  139G/42  Gkdos.  Chefs,  in  Files  "Roesselsprung".   Mar- 
ginal note:  (Not  there). 

On  2  Aug.,  Group  North,  referring  to  Paragraph  4  of  the  Naval  Staff's 
reply,  called  attention  to  its  suggestion  of  7  Jul.  1942,  in  the  sit- 
uation report  about  the  Hybachi  Peninsula  operation,  dealing  with  the 
elimination  of  Murmansk  and  of  the  entire  Kola  area  by  attacking 
Kandalaksha. 

Since  the  intentions  of  the  Armed  Forces  High  Command,  Operations 
Staff  in  this  direction  have  already  been  made  known,  no  action  is  to 
be  taken. 


Situation  3  Aug.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

According  to  intelligence  reports  from  Spanish  and  French 
sources,  it  is  feared  that  planes  flying  from  Freetown  will  raid  Port 
Etienne.   Defense  measures  have  been  ordered. 

Otherwise,  there  is  nothing  to  report. 

2.  Own  Situation: 
Nothing  to  report. 


-22- 


CONFIDENTIAL 


3  Aug.  1942 


II.   Situation  West  Area 

1.   Enemy  Situation: 

The  Admiralty  reports  about  an  allegedly  successful  en- 
gagement which  occurred  between  a  formation  of  British  light  coastal 
patrol  vessels  and  German  vessels  directly  off  Cherbourg  on  the  night 
of  1  Aug.    The  report  states  that  2  German  PT  boats  were  sunk  and 
other  German  vessels  damaged  during  the  engagement.   Two  German  tor- 
pedo boats  are  reported  to  have  been  hit.   Ho  damage  and  only  2  minor 
casualties  were  suffered  "by  the  British  forces! 

The  engagement  in  question  was  the  one  involving  the  Gth  Mine  Sweeper 
Flotilla  (see  War  Diary  2  Aug.)  which  had  reported  2  enemy  vessels  as 
probably  destroyed,  while  sustaining  only  light  casualties  itself. 

This  is  another  example  of  the  unreliability  of  ob- 
servations during  night  engagements. 

Air  reconnaissance  found  ship  movements  and  the  number  of  ships 
anchored  along  the  southern  coast  as  usual. 

Radio  intelligence  intercepted  a  message  to  an  enemy  command  post  re- 
porting the  position  of  a  German  force  in  the  South  Foreland  area.  It 
is  assumed  that  mines  have  been  laid  between  Boulogne  and  Le  Touquet. 
An  unidentified  vessel  reported  sighting  ship  wreckage  in  the  area  of 
Lowestoft. 


2. 


Own  Situation: 


Atlantic  Coast: 

A  mine-sweeping  plane  removed  one  mine  off  Lorient. 

The  Naval  Staff  recognizes  the  demand  of  the  Commanding  Admiral,  Sub- 
marines for  reinforcement  of  the  forces  of  the  Commanding  Admiral, 
Defenses,  West  in  the  Bay  of  Biscay  by  1  flotilla  of  new  mine 
sweepers. 

For  the  time  being,  the  general  shortage  of  vessels  makes  it  im- 
possible to  realize  this  demand  by  drawing  on  forces  of  Group  North. 
For  this  reason,  the  Naval  Staff  requests  Group  West  to  investigate 
the  possibilities  of  meeting  these  just  demands  of  the  Commanding  Ad- 
miral, Submarines  by  a  shift  in  the  forces  available  within  the  area 
of  the  Commanding  Admiral,  Defenses,  West.   (Replacements  of  auxiliary 
mine  sweepers  on  the  western  coast  of  France  by  new  mine  sweepers 
operating  in  the  Channel.) 

For  the  corresponding  directive  to  Group  West  and  to  the  Commanding 
Admiral,  Defenses,  West,  with  copy  to  the  Commanding  Admiral,  Sub- 
marines, see  Telegram  1801. 

Channel  Coast : 

On  the  night  of  2  Aug.,  the  3rd  Torpedo  Boat  Flotilla 
transferred  to  St.  Malo. 

The  4th  Motor  Mine  Sweeper  Flotilla  had  an  engagement  with  British  PT 
boats  off  Cape  Gris  Nez  at  0152  and  arrived  with  all  its  boats  in 
Boulogne  at  0230.   Details  are  not  yet  known. 


-23- 


CONFIDENTIAL 
3  Aug.  1942 

III.  North  Seaf  Norway,  Arctic  Ocean 

1.    North  Sea: 

Enemy  Situation: 

There  was  little  air  activity.   Air  reconnaissance  reports 
voy  movements  along  the  eastern  coast  a,s,  usual. 


con 

Own  Situation: 


»  ' 


During  the  night  o«f  2  Aug.,  mine  operation  "Alba"  was 
carried  on  as  scheduled  by  laying  the  mine  field  104.   On  that 
occasion,  at  2345,  the  8th  Motor  Mine  Sweeper  Flotilla  sighted  4 
enemy  PT  boats  in  quadrant  AN  8516.   The  enemy  boats  avoided  battle 
(see  Telegram  1100). 

On  that  night,  just  as  during  the  night  before,  patrol  positions 
along  the  Dutch  coast  were  held  by  stronger  forces. 

Mine-detonating  vessels  have  swept  3  ground  mines.   Convoy  and 
channel-sweeping  operations  in  the  area  of  the  Commanding  Admiral,  De- 
fenses, North  are  proceeding  according  to  plan  with  no  incidents  to 
report . 

At  1355,  20  Spitfires,  carried  out  a  low-level  attack  on  Flushing. 
Naval  anti-aircraft  shot  down  2  planes. 

In  the  afternoon,  enemy  reconnaissance  planes  were  reported  over  the 
German  Bight.   Our  fighters  failed  to  score  any  success. 

2,   Norway,  Arctic  Ocean: 

Enemy  Situation: 

The  Military  Attache  in  Stockholm  confirms  the  intelligence 
report  stating  that  the  main  base  of  the  Norwegian  troops  in  Scotland 
is  in  the  Wick  area.   He  adds  that  the  increased  activity  in  northern 
Scotland  and  on  Iceland  presumably  points  to  preparations  for  an 
offensive  against  northern  Norway. 

According  to  an  intelligence  report  from  Iceland  of  25  Jul.,  an  agent 
observed  a  convoy  of  18  steamers  enter  Hval  Fjord  on  18  Jul.   Several 
of  the  ships  carried  planes  and  tanks  as  deck  cargo.   Further  ships 
are  said  to  have  arrived  between  18  and  25  Jul.   (This  is  a  confirma- 
tion of  other  reports  received  about  the  assembly  of  convoy  PQ,  18.) 

Air  reconnaissance  over  the  North  Sea  failed  to  yield  results. 

Own  Situation: 

The  3rd  row  of  the  net  barrage  in  Aasen  Fjord  has  been  laid. 
Enemy  reconnaissance  planes  flew  over  the  area  of  Trondheim,  evident- 
ly on  a  routine  inspection  of  the  berths  in  that  area. 

Convoy  operations  in  the  area  of  the  Commanding  Admiral,  Norway  are 
proceeding  as  scheduled. 

Group  North  has  ordered  the  immediate  release  of  the  5th  Mine  Sweeper 
Flotilla  to  enter  the  shipyards  in  Holland.   For  the  Group's  further 
directive  concerning  the  distribution  of  naval  forces  in  the 


-24- 


CONFIDENTIAL 
3  Aug.  1942 

Norwegian  area,  see  Telegram  1259. 

Submarine  U  "601"  gave  the  following  brief  report  on  the  operation 
off  the  Novaya  Zemlya  coast:   between  21  and  24  Jul.  no  ship  move- 
ments were  observed  off  the  Matochkin  Strait.   For  copy  see  1/Skl 
18988/42  Gkdos.  in  War  Diary,  Part  B,  Vol.  IV. 

Special  Items: 

A 

On  27  Jul.,  the  Naval  Staff,  Hydrographic  and  Meteorological  Division 
issued  its  directions  for  operations  orders  and  meteorological  pro- 
jects in  1942-1943.   To  ensure  the  meteorological  service  in  the  north 
area,  the  Chief  of  the  Meteorological  Branch  of  the  Naval  Staff  has 
planned  and  prepared  the  following  4  operations  for  the  period  1942- 
1943: 

(!•).  "Holzauge" 

(2).  "Knospe  II" 

(3).  "Hessen"  ■ 

(4).  "Zenith" 

By  these  operations,  a  network  of  weather  stations  is  to  be  erected 
in  the  north  area,  which  would  ensure  better  weather  reporting  than 
thus  far  available. 

For  copy  of  the  corresponding  instruction  of  the  Naval  Staff,  Hydro- 
graphic  and  Meteorological  Division  see  l/Skl  18404/42  Gkdos.  in  War 
Diary,  Part  C,  Vol.  II. 

To  this,  Group  North  reports  that  operation  "Holzauge"  will  definitely 
be  executed.   The  date  of  departure  from  northern  Norway  depends  on 
the  convoy  situation  and  air  reconnaissance  in  the  Arctic  Ocean. 

Decision  about  operation  "Knosoe  II"  cannot  be  made  until  just  before 
its  start,  since  nobody  can  as  yet  foresee  in  what  way  the  situation 
in  the  Arctic  Ocean  will  develop. 

Concerning  the  operations  "Hessen"  and  "Zenith",  Group  North  requests 
that,  both  for  operational  reasons  and  in  view  of  the  general  enemy 
situation,  no  further  weather  ships  be  left  at  sea  for  use  as  relay 
stations.   If  the  enemy  can  locate  our  vessels,  he  will  undertake 
countermeasures  which  may  interfere  with  our  decisions.   On  the  whole, 
the  v/eather  service  of  our  Air  Force  and  of  the  submarines  at  sea  has 
so  far  proved  adequate.  According  to  previous  experience  with 
"Knospe",  communications  with  "Holzauge"  appear  ensured  even  without 
rslay  stations,  except  during  periods  of  considerable  magnetic  dis- 
turbances.  (See  Telegram  1042.) 

The  Naval  Staff,  Operations  Division  will  state  its  position  later. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 
1.   Enemy  Situation: 

Nothing  to  report. 

-25- 


CONFIDENTIAL' 
3   Aug.    194* 

2.    Own  Situation: 

No  incidents  have  been  reported  in  connection  with  convoy 
and  patrol  operations  in  the  area  of  the  Commanding  Admiral,  Defenses, 
Baltic  Sea. 

Group  North  intends  to  dispense  with  the  mine-laying  operations 
"Se villa  grosse  Ausfuehrung",  "Sevilla",  and  "Skarskhorn"  in  the 
Baltic  Sea  entrances  which  were  planned  in  connection  with  operation 
"Barbarossa".   Instead,  it  intends  to  place  the  mine  carrier  OTTER, 
which  originally  was  to  be  used  in  these  operations,  together  with 
her  load  of  mines,  immediately  at  the  disposal  of  the  Commander,  Mine 
Sweepers,  Baltic  Sea,  in  order  to  provide  him  with  the  necessary  re- 
serves.  Group  North  asks  the  Naval  Staff,  Operations  Division  for 
approval  at  its  earliest  convenience. 

Group  North  has  already  returned  the  mines  designed  for  use  in  the 
mine-laying  operations  "Grundsee  Ost  und  West",  "Toledo",  "Granada 
grosse  Ausfuehrung",  "Granada",  and  "Grauer  Ost"  to  the  Mining  and 
Barrage  Inspectorate,  and  reports  that  they  are  now  available  for 
other  purposes.   (See  Telegram  2329.) 

A  decision  by  the  Naval  Staff  will  follow. 

Mine  Operation  "Seeigel  XXII"  in  the  area  of  the  Commander,  Mine 
Sweepers,  Baltic  Sea  has  been  executed  according  to  plan.   Operation 
"Seehund  I"  was  broken  off  on  account  of  bad  weather.   Anti-submarine 
patrol,  mine-sweeping,  and  convoy  operations  are  proceeding  as 
scheduled  with  no  incidents  to  report. 

A  Finnish  report  states  that  it  is  assumed  that  a  Russian  motor  tor- 
pedo boat  was  destroyed  in  the  mine  field  "Sauna  I".   On  the  after- 
noon of  3  Aug.,  Russian  vessels  were  observed  sweeping  mines  in  that 
field. 

In  accordance  with  the  request  of  the  Commander,  Mine  Sweepers,  Baltic 
Sea  (see  War  Diary  2  Aug.),  Group  North  has  ordered  cancellation  of 
compulsory  escort  between  point  Braun  60"  and  Memel  a3  soon  as  the 
31st  Mine  Sweeper  Flotilla  has  taken  up  its  positions.   Ships  are 
again  to  be  advised  to  proceed  as  close  to  the  coast  as  possible. 


V.    Submarine  Warfare 

1.   Enemy  Situation; 

According  to  an  intelligence  report  from  Sweden,  a  large 
convoy  is  being  assembled  in  the  U.S.A.,  primarily  for  the  transport 
of  troops  to  Iceland  and  the  northern  part  of  the  British  Isles. 
Weather  permitting,  the  departure  is  scheduled  to  take  place  on  4  or 
5  Aug. 

At  2225,  a  plane  reported  flying  over  a  submerging  submarine  south- 
west of  Reyk janes.   At  1305  a  message  was  intercepted  reporting  a 
depth  charge  attack  on  a  submarine  some  160  miles  northwest  of  Bilbao 
in  the  Bay  of  Biscay.   It  is  assumed  that  the  submarine  was  hit.   At 
1755,  a  plane  reported  sighting  a  submarine  some  200  miles  south  of 
La  Rochelle.   In  the  South  Atlantic,  the  British  steamer  TURKESTAN  re- 
ported having  sighted  a  periscope  600  miles  southwest  of  Freetown. 


-26- 


CONFIDENTIAL 
3  Aug.  1942 

The  U.S.  steamer  HARRY  LUCKENBACK  reported  sighting  a  periscope  some 
400  miles  southeast  of  Monrovia.   It  is  not  likely  that  the  sub- 
marines were  ours. 

Submarine  attacks  were  reported  by  the  Norwegian  steamer  T0PDALSFJ0RD 
(4,271  GRT)  130  miles  east  of  Cape  Race,  and  by  the  Norwegian  steamer 
BRIMANGER  (4,883  GRT)  180  miles  southeast  of  Cape  Race.   Soon  there- 
after, the  report  about  the  attack  on  the  BRIMANGER  was  cancelled. 
In  addition,  numerous  submarine  sighting  signals  v/ere  intercepted 
along  the  American  East  Coast.   A  radio  report  stated  that  so-called 
Bangors,  i.e.  vessels  specially  equipped  for  anti-submarine  defense, 
are  protecting  the  estuary  of  the  St.  Lawrence  River. 

In  the  West  Indies,  2  messages  were  intercepted  reporting  submarine 
attacks  360  miles  east  of  Trinidad. 

2.    Own  Situation: 

In  the  course  of  her  operation  against  the  convoy  in 
quadrant  BC,  submarine  U  "552"  sank  another  7,000  GRT  steamer.   The 
operation  was  then'  broken  off.   Submarine  U  "607"  sank  an  8,000  GRT 
steamer  which  had  stopped  in  quadrant  BC  5746.   It  may  be  that  this  , 
steamer  is  identical  with  one  of  the  steamers  reported  torpedoed  by 
submarine  U  "552"  on  2  Aug. 

No  successes  have  been  reported  from  the  American  East  Coast. 

East  of  Trinidad,  submarine  U  "108"  sank  a  10,000  GRT  tanker. 

No  sinkings  have  been  reported  by  submarines  operating  in  the  South 
Atlantic  and  in  the  Mediterranean.  , 

Further  reports,  particularly  those  about  a  directive  of  the  Command- 
ing Admiral,  Submarines  concerning  the  sending  of  direction-finder 
signals  by  submarines  and  about  captured  American  instructions  for 
sailing  from  Colon  through  the  Windward  Passage  in  northerly  direc- 
tion, are  contained  in  the  Supplement  to  Submarine  Situation  in  War 
Diary,  Part  B,  Vol.  IV. 

Special  Items t 

• 

The  directive  of  the  Second  Admiral,  Submarines  concerning  assignment 
of  specialists  of  the  II  Branch  (Laufbahn  II)  to  shipyard  work  on 
submarines  sets  forth  the  details  of  this  assignment.   For  copy  of  the 
corresponding  telegram  see  1/Skl  18970/42  Gkdos.  in  War  Diary,  Part 
B,  Vol.  V. 


VI.   Aerial  Warfare 

1.   British  Isles  and  Vicinity; 

During  the  day,  fighter -bombers  raided  Middlesbrough, 
Scarborough,  Leeds,  Bradford,  and  other  localities.   Results  were 
satisfactory.   On  the  night  of  3  Aug.,  12  Ju  88 's  were  sent  into 
action  against  ships  off  the  southern  coast  of  England.   Ten  enemy 
planes  penetrated  into  the  area  of  the  Baltic  Sea  entrances  in  the 
western  part  of  the  Baltic  Sea,  presumably  for  the  purpose  of  laying 
mines.  No  bombs  were  dropped  and  no  planes  were  shot  down. 


-27- 


CONFIDENTIAL 
3   Aug.    19 

2.  Mediterranean  Theater; 

During  the  day,  the  following  operations  were  executed:  flank 
protection  for  the  Italian  mine  operations  off  Marsa  Llatruh,  spot-check 
reconnaissance  between  Port  Said  and  Haifa,  and  convoy  protection  by 
strong  forces.   A  fighter  assault  on  Malta,  with  several  bombers  parti-* 
cipating,  lured  out  enemy  fighters,  three  of  which  were  shot  down. 

3.  Eastern  Front: 

Nine  planes  were  shot  down  on  Army  fronts.   During  attacks  on 
ships  in  the  Gulf  of  Finland,  2  motor  mine  sweepers  were  probably  sunk, 
and  a  third  damaged. 


VII.  V/arfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

On  2  Aug.,  the  expected  convoy  arrived  in  Gibraltar.   It  camei 
from  the  west,  probably  from  England,  and  numbered  5  steamers. 

Two  more  submarines  have  been  located  in  Valletta. 

Submarines  were  sighted  off  Sebenlco,  Otranto,  and  Benghazi. 

Ship  traffic  in  the  Eastern  Mediterranean  was  light.   Eight  steamers  were 
observed  in  Beirut,  and  1  submarine  was  sighted  outside  the  harbor. 

2.  Own  Situation,  Mediterranean: 

On  the  night  of  2  Aug.,  enemy  planes  launched  another  heavy 
attack  on  Bardia.   Twelve  bombs  were  dropped  on  the  city  and  harbor 
area.   Since  this  port  lacks  anti-aircraft  artillery,  its  further  use 
can  only  be  justified  if  it  is  provided  with  stronger  anti-aircraft  de- 
fenses. 

The  Italians  intend  to  have  2  destroyers  lay  the  minefield  off  Marsa 
Matruhon  4  Aug.  in  the  morning." 

3.  Transport  of  Supplies  to  North  Africa: 

In  the  afternoon,  an  enemy  submarine  sank  the  motor  ship 
MONVISO  (5,500  GHT )  16  miles  off  Benghazi.   The  steamer  ANKARA  left 
Taranto  for  Tobruk.   The  motor  ship  BIXIO  and  the  SESTRIERE  departed 
from  Brindisi  bound  for  Benghazi,  escorted  by  3  destroyers  and  2  tor- 
pedo boats.   On  the  evening  of  2  Aug.,  the  steamer  ALBACHAVIA  arrived  in 
Tobruk. 

Otherv/ise,  ships  are  proceeding  as  scheduled.   2,251  tons  were  unloaded 
in  Tobruk  on  1  Aug.,  860  tons  on  2  Aug. 


-E8k- 


CONFI  DEI-IT  I AL 
3  Aug.  1942 

4.    Area  Naval  Group  South: 

Aegean  Sea: 

No  incidents  have  occurred  at  sea.   The  Staff  Section  of  the 
Naval  Construction  Division  refused  on  27  Jul.  to  send  the  500  German 
shipyard  workers  to  the  shipyard  in  Piraeus^,  which  had  been  promised 
some  time  ago.   Group  South  reports  that  the  proposal  of  the  Naval 
High  Command  to  resort  to  Russian  workers  from  Nikolayev  cannot  be 
taken  into  consideration  since  the  number  of  available  workers  is  in- 
sufficient even  to  cover  the  needs  of  the  Nikolayev  shipyard.   The 
Group  has  ordered  Admiral  Massmann  to  report  on  the  matter  to  the 
Commander  in  Chief,  Navy  personally. 

,  At  the  conference  on  the  situation  on  28  Jul.,  the 
Chief,  Naval  Construction  Division,  reported  that  in 
Salami s  the  problem  of  manpower  shortage  could  be 
solved  by  extending  armed  forces  rations  to  Greek 
workers.   The  Commander  in  Chief,  Navy  has  passed  a 
decision  to  this  effect. 

Black  Sea: 

Enemy  Situation: 

Long-range  air  reconnaissance  reports  that  on  the  afternoon 
of  2  Aug.,  a  force  of  1  cruiser,  1  destroyer,  and  4  escort  vessels, 
proceeding  at  high  speed  on  a  westerly  course,  was  observed  20  miles 
west -northwest  of  Tuapse.   According  to  continuous  reports  from 
shadowing  planes,'  the  force  was  steering  a  northwesterly  to  northerly 
course,  and  at  1945  it  was  50  miles  south  of  Anapa.   By  evaluation  of 
photographs  the  larger  vessels  have  been  tentatively  identified  as  a 
heavy  cruiser  of  the  KIROV  class  and  the  flotilla  leader  KHARKOV. 
From  2245  on,  our  torpedo  planes  followed  the  force  whose  position  at 
2551  was  reported  as  10  miles  southwest  of  Cape  Opuk  on  a  20°  course. 
After  midnight,  Italian  submarine  chasers  attacked  the  force  some  20 
miles  south  of  Feodosiya.   According  to  further  sighting  reports,  at 
0455  the  2  vessels  were  located  with  7  escort  vessels  on  a  110°  course 
south-southwest  of  Anapa  and  at  0650  with  15  PT  boats  on  a  150O  course 
southwest  of  Novorossisk.   Since,  in  addition  to  the  force  which  was 
sighted,  the  Main  Naval  Direction  Finding  Station  at  Constanta  located 
the  cruiser  KRASNY  KRIM  in  the  same  area  at  the  same  time,  it  is  not 
impossible  that  several  groups  participated  in  the  thrust  towards  the 
Crimean  coast.   Group  South  has  requested  the  Air  Commander,  South  to 
check  on  this  possibility. 

Own  Situation: 

On  2  Aug.  at  1800  the  5rd  Motor  Mine  Sweeper  Flotilla  de- 
parted from  Ivanbaba  with  8  landing  barges,  sailing  close  to  the 
coast  in  easterly  direction.   At  2500  the  flotilla  passed  Cape  Takil. 
As  planned,  the  1st  PT  Boat  Flotilla  and  a  group  of  Italian  sub- 
chasers carried  out  protective  measures  south  of  the  Kerch  Strait, 
and  the  1st  PT  Boat  Flotilla  laid  mines  on  the  way  and  then  took  up 
patrol  positions. 

On  3  Aug.  at  0615  the  Admiral,  Black  Sea  reported  to  Group  South  that 
6  landing  barges  broke  through  the  Kerch  Strait  according  to  plan, 
while  1  motor  mine  sweeper  together  with  2  landing  barges,  for 
reasons  unknown,  turned  back  at  Yenikale,  heading  for  Kerch.   One  of 
the  landing  barges  was  hit,  but  is  still  afloat.   The  Chief  of  Staff, 


-29- 


CONFIDENTIAL 
3  Aug. *  1342 

Group  South  transmitted  these  facts  to  the  Naval  Staff  by  telephone 
at  1200. 

Of  the  three  Italian  submarine  chasers  protecting  the  break-through, 
subchaser  LIAS  "573"  stopped  in  her  patrol  >position  5  miles  south  of 
Feodosiya  as  a  result  of  engine  failure.   At  2400,  she  sighted  an 
enemy  force  of  1  three-funnel  cruiser  and  1  flotilla  leader  and 
launched  2  torpedoes  against  the  cruiser  at  a  distance  of  barely 
100  n. *  One  of  the  torpedoes  hit  the  target.   At  0130,  the  Italian 
subchaser  MAS  "568",  which  had  been  notified  in  the  meantime,  at- 
tacked the  cruiser  with  2  torpedoes,  hitting  her  with  both.   The 
Italians  are  certain  that  the  burning  ship  sank.   The  2  subchasers 
were  then  pursued  by  the  flotilla  leader  but  reached  the  base  un- 
damaged.  During  the  subsequent  search  on  the  morning  of  3  Aug.,  sub- 
chaser LIAS  "569"  found  wreckage  and  equipment  at  the  place  where  the 
torpedo  attack  had  occurred. 

It  is  not  yet  quite  clear  what  vessel  was  attacked 
and  probably  sunk,  since  the  force  located  on  the 
morning  of  3  Aug.  was  located  later  in  its  original 
strength.   (See  Enemy  Situation. ) 

During  the  same  night,  around  midnight,  Ivanbaba  was  under  continu- 
ous air  attack  and  a  simultaneous  attack  from  the  sea.   The  attack 
from  the  sea  may  be  taken  as  another  proof  that  other  enemy  naval 
forces  were  operating  off  the  Crimean  coast. 

Convoy  operations  are  proceeding  according  to  plan. 

During  July  1942,  49,500  tons  of  supplies  were  transported  by  sea 
from  Rumania  to  the  Ukraine  and  9,000  tons  from  the  Ukraine  to 
Rumania.   Since  20  Apr.,  a  total  of  130,000  tons  of  supplies  were 
brought  into  the  Ukraine  by  sea. 

Special  Items: 

(1)  On  22  Jul.,  Group  South  suggested  that  a  liaison  officer  to  the 
Admiral,  Libya  be  appointed,  in  order  to  insure  liaison  between  the 
Group  and  the  Admiral,  Aegean  Sea,  on  one  hand,  and  the  Admiral, 
Libya  on  the  other,  in  all  matters  concerning  the  transport  of 
supplies  via  the  Aegean  Sea.   The  German  Naval  Command,  Italy  has 
expressed  its  opposition  to  this  measure.   Group  South  restated  its 
position  in  a  communication  to  the  Naval  Staff  Quartermaster  Di- 
vision, Plans  and  Schedules  Branch  on  3  Aug.    The  Naval  Staff 
Operations  Division  was  notified  accordingly  via  Telegram  1345. 

(2)  Group  South  has  submitted  to  the  Naval  Construction  Division, 
Shipyard  Branch  a  definite  construction  program,  set  up  in  coopera- 
tion with  the  Nikolayev  shipyard,  "so  that  we  can  at  last  progress 
beyond  the  planning  stage".   Speedy  approval  was  requested.   Naval 
Staff  Operations  Division  is  notified/ 

The  plan  calls  for  construction  of  3  submarine  chasers,  3  war  trans- 
ports, and  2  tankers  of  the  HERCULANULI  type,  for  which  materials  are 
available.   In  addition,  slipways  are  available  for  3  more  subchasers 
and  2  more  war  transports.   There  is  also  enough  space  for  the 
assembly  of  6  landing  barges.   This  requires  1200  to  1400  more 
workers  until  April.   (See  Telegram  1935. ) 

(3)  Results  of  an  investigation  by  the  Naval  Staff  Communications 
and  Intelligence  Division  of  the  possibilities  of  transporting 


-30- 


CONFIDENTIAL 
3  Aug.  1942 

Italian  subchasers  from  the  Black  Sea  into  the  Caspian  Sea  overland 
north  of  the  Caucasus  (see  V/ar  Diary  1C  Jul.)  did  not  produce  satis- 
factory results.   For  this  reason,  Group  South  has  been  instructed 
to  put  local  stations  in  charge  of  further  investigations  in  this- 
direction  and  to  report  their  findings  to  the  Naval  Staff.   The 
latter  will  try  to  obtain  further  facts  from  the  Army  General  Staff, 
Intelligence  Division,  East. 


VIII.  Situation  East  Asia 


Nothing  to  report. 


IX.   Army  Situation 

1.  Russian  Eront • 

Army  Group  A: 

Despite  strong  enemy  resistance,  our  troops  succeeded  in 
carrying  their  attack  beyond  the  Bolshaya  Ternovka  river.   After  a 
surprisingly  rapid  thrust,  3S  troops  established  a  bridgehead  across 
the  Kuban.   Using  their  last  fuel  reserves,  detachments  of  the  3rd 
Panzer  Division  seized-  Voroshilovsk. 

Army  Group  B: 

4 

The  enemy  facing  our  southern  wing  is  falling  back  in 
easterly  direction.   New  fighting  has  broken  out  northwest  of  Kalach, 
Enemy  attacks  south  of  Serafimovich  and  west  of  Kazanskaya  were  re- 
pulsed.  In  the  vicinity  and  north  of  Voronezh  there  were  reconnais- 
sance and  artillery  activity. 

Central  Army  Group ; 

East  of  Rzhev,  enemy  artillery  is  attacking  continuously, 
but  so  far  without  success.   The  fact  that  more  enemy  forces  are 
moving  into  position  means  continued  attacks  at  this  point.   North 
and  northwest  of  Rzhev,  heavy  enemy  attacks  have  until  now  likewise 
failed  to  reach  their  objective.   Attacks  continue  near  Byeloio 

Northern  Army  Group: 

Enemy  attacks  on  the  Volkhov  front  south  of  Yamno,  north- 
east of  Soltsy,  and  south  of  Leningrad  were  repulsed. 

2.  Finnish  Front ; 

Only  local  fighting  is  reported.   Our  assault  troop  opera- 
tions in  the  Kandalaksha  sector  encountered  a  watchful  enemy. 

3.  North  Africa ; 

Reconnaissance  and  artillery  activity  as  usual.   For  dis- 
tribution of  enemy  forces  see  daily  situation  report „ 


-31- 


CONFIDENTIAL 
4  Aug.  1942 

Items  of  Political  Importance 

In  connection  with  the  question  of, the  Second  Front  in  Europe,  the 
rumors  about  Churchill's  flight  to  Moscow,  spread  by  various  foreign 
sources,  have  not  been  confirmed.       * 

Other  runors  report  of  a  meeting  between  Chiang  Kai-3hek  and  Stalin 
in  Moscow,  their  trip  to  London,  and  even  of  their  further  trip  to- 
gether with  Churchill  to  Washington. 

Usually,  such  rumors  arise  when  the  enemy  is  at  a 
loss  to  know  what  to  do. 

Admiral  Leahy  and  General  Marshall  are  said  to  have  declared  them- 
selves in  favor  of  the  Second  Front.   In  Washington,  the  question 
of  who  is  going  to  be  the  Commander  in  Chief  of  the  Allied  Armed 
Forces  is  still  a  prime  concern.   Among  other  possibilities,  a  joint 
command  by  a  group  of  British  and  American  generals  is  mentioned. 

U.S.A.: 

The  special  military  tribunal  has  sentenced  to  death  the  8  German 
agents  who  had  been  arrested. 

According  to  an  intelligence  report  from  the  U.S.  Embassy  in  London, 
leading  Washington  circles  are  viewing  the  future  very  optimistically 
despite  the  heavy  setbacks  during  the  summer  of  1942  which  had  been 
expected.   Germany  is  said  to  be  now  in  the  same  situation  as  in 
1917,  and  it  will  take  at  least  another  18  months  of  concentrated  air 
attacks,  along  with  land  and  sea  operations,  to  defeat  her.   Some  of 
her  allies,  however,  may  be  expected  to  become  prematurely  war- 
weary  and  inclined  to  make  separate  peace. 

It  is  expected  that  the  U.S.A.  will  have  at  its  disposal  a  well- 
equipped  army  of  7,800,000  men  by  1  Mar.  1943,   U.S.  planes  will  be 
masters  of  the  sky,  and  for  every  German  tank  there  will  be  6 
American  ones.   New  fronts  will  tie  up  German  forces  in  many  places 
till  the  spring  of  1943  will  mark  the  beginning  of  the  "real  Ameri- 
can war".  Total  victory  is  not  expected  before  1944.  The  most  in- 
teresting point  in  the  plan  to  win  total  victory  is  the  increase  in 
ship  construction:   in  1942,  10,000,000  tons  will  be  built  and  in  1943 
20,000,000  tons,  including  the  concrete  ships  which  will  be  con- 
structed in  45  days  on  a  mass  production  basis.   Plane  production 
is  said  to  have  mounted  from  2,400  in  October  1941  to  4,600  in  May 
1942  and  will  reach  10,000  in  December.   The  number  of  tanks  which 
were  produced  at  a  rate  of  850  per  month  in  1941  has  now  risen  to 
5,000  per  month. 


Special  Items: 

I.   The  Naval  Staff  directs  Group  North,  with  copy  to  the  Fleet,  to 
bring  the  LUETZ0W  back  to  her  home  base,  as  planned.   Repairs  can 
presumably  start  in  the  Navy  shipyard  of  Wilhelmshaven  on  1  Sep. 
Repairs  in  Oslo  are  out  of  the  question.   If  the  LUETZ0.V  cannot  enter 
the  shipyard  immediately  after  her  return,  she  will  be  released  for 
training  purposes,  as  suggested  by  the  Fleet  Command, 


-32- 


$ 


CONFIDENTIAL 
4  Aug.  1942 

II.  Upon  request  of  the  Fleet  Command,  Group  North  has  authorized 
the  transfer  of  the  KOELN,  together  with  the  STEIUBRINCK,  to  the 
Arctic  area,  beginning  6  Aug.  When  carrying  out  the  transfer,  the 
Fleet  Command  should  see  to  it  that  a  congestion  of  ships  in  Narvik 
be  avoided.   If  necessary,  the  KOELN  and  2  or  3  destroyers  should  be 
transferred  to  Harstad  or  to  Tromsoe.   Participation  of  the  KOELN 

in  operation  "Eispalast"  has  been  approved. 

III.  On  1  Aug.,  the  German  Admiral  at  Tokyo  reported  that  a  Japanese 
naval  officer  revealed  the  following: 

1.  The  German  Foreign  Minister  recently  suggested  to  Oshima 
that  Japan  launch  an  offensive  against  the  sea  provinces.   The 
Japanese  Navy  is  opposed,  especially  in  view  of  the  fact  that  a 
rapid  and  complete  success  is  not  at  all  certain  at  the  present 
moment,  and  American  bombers  can  very  well  be  transferred  there  in 
great  numbers.   Japan  will  attack  as  soon  as  the  time  is  ripe. 

2.  From  1944  on,  the  American  war  potential  will  make  itself- 
felt  to  an  ever  .greater  extent  in  Japan.   By  that  time  Japan  will 
have  to  be  prepared.  For  this  reason,  she  must  in  the  meantime 
avoid  any  operations  involving  great  risks.   Presumably  the  attack 
on  Ceylon,  which  might  cost  Japan  a  major  part  of  her  naval  planes, 
will  not  take  place. 

3.  An  attack  on  Calcutta  after  the  rain  period  is  merely  a 
question  of  ship  tonnage.    The  operation  has  not  yet  been  decided 
upon.   The  Army  has  been  told  that  it  would  be  desirable  to  make 
such  an  attack. 

4.  If  "Hitler  first"  is  the  enemy's  goal,  then  the  goal  of 
the  Axis  after  Russia's  collapse  should  be  "Great  Britain  first". 
Beginning  around  the  middle  of  August,  the  Japanese  Navy  is  going 
to  conduct  an  all-out  submarine  and  cruiser  war  in  the  western 
part  of  the  Indian  Ocean  and  around  South  Africa.   The  Navy  feels 
sure  that  it  can  sink  as  many  as  400,000  tons  a  month.   Such  results 
plus  500,000  tons  a  month  expected  to  be  sunk  by  the  Germans,  would 
bring  about  Great  Britain's  collapse  next  spring,  especially  if 
Suez  falls  and  the  British  Navy  is  forced  out  of  the  Mediterranean 
and  the  Red  Sea. 

• 

5.  "Great  Britain  first"  is  important  also  because  then  the 
problems  of  China  and  India  would  be  automatically  solved  and  the 
Australian  question  would  likewise  be  much  easier  to  settle. 

6.  Germany  and  Italy  must  be  aware  of  the  fact  that,  if  such 
an  eventuality  arises,  the  Japanese  Armed  Forces  can  by  no  means  be 
concerned  with  the  conquest  of  the  southern  outlet  of  the  Red  Sea 
or  the  Persian  Gulf. 

A  copy  of  the  report  has  been  transmitted  to  the  Naval  Representative 
at  the  Armed  Forces  High  Command,  Operations  Staff. 


-33- 


CONFIDENTIAL 
4  Aug.  1942 

Situation  4  Aug.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

Indian  Ocean: 

According  to  an  intelligence  report,  large  numbers  of 
South  African  troops  have  been  placed  aboard  the  ships  of  the  2 
convoys  which  are  to  leave  Durban  for  Egypt  on  4  Aug. 

An  SOS  was  intercepted  from  a  British  steamer  about  540  miles  north- 
east of  Mauritius.   Another  steamer  reported  from  the  area  south- 
west of  Albany  (Australia)  that  she  was  being  fired  upon.  An  anti- 
submarine v/arning  has  been  issued  for  that  area. 

2.  Own  Situation: 

Directions  concerning  war  decorations  for  prize  crews  are 
being  transmitted  to  the  Attache  in  Tokyo  via  Telegram  1020. 

A  directive  to  furnish  the  TANNENFELS  and  the  other  blockade-runners 
with  the  same  reference  points  for  their  return  voyage  to  Europe 
as  for  their  voyage  to  Japan  is  being  transmitted  to  the  Naval 
Attache  in  Tokyo  via  Telegram  2100. 

Information  about  the  arrival  of  the  D0GGERBANK  in  Batavia  on  1  Aug., 
as  well  as  about  the  position  according  to  international  lav;  of  the 
South  Orkney  Islands,  South  Shetland  Islands,  the  Sandwich  Islands, 
and  Graham  Land  is  sent  to  all  vessels  in  foreign  waters  via  Radio- 
gram 1700. 

Information  about  the  enemy  situation  via  Radiograms  0538  and  1947. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

Nothing  noteworthy  has  been  reported. 

2.  Own  Situation: 

Atlantic  Coast: 

Mine -detonating  vessels  have  swept  3  ground  mines  off 
Lorient.  A  mine-sweeping  plane  removed  1  ground  mine  off  La  Pallice. 
A  French  fishing  boat  struck  upon  a  ground  mine  east  of  lie 
d'Oleron  and  sank.   In  spite  of  a  British  warning,  French  fishermen 
kept  fishing  in  the  entire  unrestricted  area  in  the  Bay  of  Biscay. 

Channel  Coast; 

At  0205,  Army  batteries  near  Le  Touquet  fired  at  ships 
located  at  sea,  presumably  PT  boats. 

A  subsequent  report  about  the  engagement  of  the  8th  Mine  Sweeper 
Flotilla  off  Cherbourg  on  the  night  of  1  Aug.  states  that  a  direct 


-34- 


CONFIDENTIAL 


4  Aug.  1942 


hit  by  a  10.5  cm  gun  resulted  in  the  probable  sinking  oT   1  motor 
gunboat,  while  2  boats  were  set  aflame  and  hits  were  observed  on  some 
other  boats. 

During  the  evening  hours,  numerous  balloons  coming  from  the  sea 
drifted  over  the  Calais-Dunkirk  area..   Incendiary  canisters  were 
attached  to  the  balloons. 


During 


the  nirht  of  3  Auc1;.,  a  total  of  1C  PT  borits  were  enf'ajTed  in  a 


torpedo  attack  against  a  convoy.   Two  steamers  o 

sunk,  1  steamer  of  2,000  CrRT  was  probably  sunk. 

enemy  destroyers  was  very  lively  and  resulted  in  a  number  oT   torpc 


f  1,500  G?T  each  were 
Defense  action  by 


misses  which  were  due  to  the 
Our  forces  suffered  no  losse; 


skillful  maneuver  in;; 
For  brief  reports 


of  the  enemy  vessels, 
from  the  4th  PT  Boat 


Flotilla  and  the  Commander  of  PT  boats  see  Telegrams  1040,  2205,  and 
1120. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.    North  Sea; 

Enemy  Situation: 

Air  reconnaissance  found  little  convoy  activity  alonr;  the 
southeast  coast. 

Own  Situation;  « 

Mine-detonating  vessels  swept  5  mines  along  the  convoy  route 
north  of  Egmond-aan-Zee,  Vlieland,  and  Terschelling. 

In  July,  a  total  of  131  ground  mines  were  swept  in  the  area  of  the 
Commanding  Admiral,  Defenses,  North.   33  air  raids  and  3  PT  boat  at- 
tacks were  made  against  the  naval  forces  of  the  Commanding  Admiral, 
Defenses',  North,  which  in  turn,  shot  down  8  attacking  planes  and  sank 
4  attacking  PT  boats.   One  mine-detonating  vessel,  2  steamers,  and  2 
small  vessels  were  lost  through  enemy  mines. 

The  Naval  Attache  in  Copenhagen  reports  that- after  a  short  interrup- 
tion (see  V.'ar  Diary  31  Jul.)  Danish  fishing  vessels  have  resumed 
fishing  in  the  North  Sea  in  full  force. 


Convoys  are  proceeding  according  to  plan.   Unfavorable  weather 
curbed  mine-sweeping  operations. 

2.   Norway,  Arctic  Ocean; 

Enemy  Situation: 

On  the  afternoon  of  3  Aug.,  and  on  '  the  morning  of  4  Aug., 
planes  were  active  over  the  northern  and  western  coasts  of  Norway.  On 
2  Aug.,  a  surfaced  submarine  was  sighted  8  miles  west  of  Obrestad. 

According  to  air  reconnaissance  reports,  no  ships  are  left  in  PIval 
Fjord  and  in  the  roadstead  of  Reykjavik.   It  has  not  been  determined 
what  has  become  of  the  ships  reported  assembled  in  Hval  Fjord  on  1  Aug. 
It  is  probable  that  convoy  PQ  18  has  gotten  under  way. 


-s?>-5- 


CONFIDENTIAL ' 
4  Aug.  1942 

Own  Situation: 

No  incidents  have  been  reported  from  the  area  of  the  Command-* 
ing  Admiral,  Norway. 

On  3  Aug.,  the  Air  Commander,  North  ('..'est)  informed  the  Commanding 
Admiral,  Norway  that  the  present  fuel^situation  requires  a  considerable 
reduction  in  hitherto  regular  reconnaissance  operations,  especially  in 
the  area  between  Norway  and  the  coast  of  Scotland,  the  Orkney,  Shetland, 
and  Paeroe  Islands,  and  in- the  central  area  of  the  North  Sea.   Daily 
reconnaissance  will  not  be  carried  out,  except  if  there  are  special  in- 
dications of  the  presence  of  enemy  ships.   To  this  the  Commanding  Ad- 
miral, Norway  properly  remarks  that  only  air  reconnaissance  can  pro- 
vide indications  of  enemy  ship  movements.   He  points  to  the  growing 
danger  of  being  taken  unawares  during  the  period  of  long  nights,  if  air 
reconnaissance,  especially  the  evening  reconnaissance  over  the  northern 
part  of  the  North  Sea,  is  no  longer  carried  out.   Group  North  points 
out  that  inadequate  fuel  allotments  for  the  5th  Air  Force  also  have  a 
bad  effect  on  other  operations. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situatio'n; 

Radio  intelligence  located  10  submarines.   In  the  entrance  to 
the  Kronstadt  Bay,  intensified  ship  traffic  was  observed  from  the 
coast. 

2.  Own  Situation; 

Convoy  and  patrol  operations  in  the  area  of  the  Commanding 
Admiral,  Defenses,  Baltic  Sea  are  proceeding  according  to  plan.   No  in- 
cidents have  been  reported. 

Five  ground  mines  were  swept  in  the  Mecklenburg  Bay,  one  was  swept  in 
the  Kiel  Bay. 

Mine  operations  "Seehund  4"  and  "Seehund  5"  in  the  area  of  the  Commander, 

Mine  Sweepers,  Baltic  Sea  were  executed  during  the  night  of  3  Aug.   Anti-         ^ 

submarine  patrol,  convoy,  and  general  patrol  operations  are  proceeding 

without  incidents. 

The  Naval  Staff  has  notified  Group  North,  with  copies  to  the  Commander, 
Mine  Sweepers,  Baltic  Sea  and  to  the  Naval  Liaison  Staff,  Finland,  that 
the  Marshal  of  Finland  declared  the  transfer  of  German  and  Italian 
vessels  from  Lake  Ladoga  to  the  Gulf  of  Finland  undesirable  at  the 
present  moment.   For  the  time  being,  therefore,  no  transfer  should  be 
ordered.   When  the  time  has  come,  a  new  request  is  to  be  submitted,  pro- 
vided the  situation  on  Lake  Ladoga  remains  unchanged. 


-36- 


CONFIDENTIAL 
4  Aug.  1942 

V.   Merchant  Shipping 

Brief  Report  No.  23/42  of  the  Naval  Intelligence  Division, 
Foreign  Merchant  Marine  Branch  deals  with  the  amount  of  the  whale 
oil  obtained  by  Britain  in  1941-1942;  Spanish  security  measures  in 
the  port  of  Huelva;  new  regulations  for  the  issuance  of  navicerts; 
increase  in  Turkey's  ship  tonnage  by  construction  of  40  large 
auxiliary  sailing  vessels;  reorganization  of  U.S.  sea  transport; 
transfer  of  Venezuelan  tankers  to  U.S.  ownership,  etc. 


VI.   Submarine  Warfare 

1.  Enemy  Situation: 

Lively  reconnaissance  activity  of  the  15th  Air  Group  and 
planes  from  Iceland.   In  the  morning  and  in  the  afternoon  submarines 
were  sighted  in  the  area  southwest  of  Reyk janes.   Other  submarines 
were  reported  sighted  west  of  the  Faeroe  Islands.   Decoding  of  a 
radio  message  shows  belatedly  that  the  auxiliary  aircraft  carrier 
ARCHER  was  ready  for  operations  in  Bermuda  on  12  Jul.  and  was 
probably  bound  for  the  northeastern  coast  of  the  U.S.   Radio  intell- 
igence intercepted  a  number  of  submarine  sighting  reports  from  that 
vicinity,  as  well  as  from  the  West  Indies. 

2.  Own  Situation: 

Six  submarines  are  outward  bound  from  home  bases  .and 
western  France. 

No  reports  have  been  received  from  submarines  in  the  Arctic  Ocean. 

In  the  North  Atlantic,  submarine  U  "704"  made  contact  with  a  south- 
westbound  convoy  in  quadrant  BC  2998  under  very  poor  attack  condi- 
tions.  Since  visibility  did  not  improve,  group  "Steinbrick"  was 
ordered  to  stop  operations  against  this  convoy.   Two  of  the  sub- 
marines departing  from  home  bases  are  to  proceed  to  the  eastern 
coast  of  Newfoundland. 

En  route  from  Germany  to  her  operational  area,  and  at  the  same  time 
on  the  first  voyage  of  her  captain,  submarine  U  "176"  sank  in 
quadrant  BD  1387  the  unescorted  steamer  RICHMOND  CASTLE  (7,798  GRT) 
which  was  proceeding  at  high  speed  in  the  direction  of  England. 

In  the  West  Indies,  submarine  U  "160"  sank  the  tanker  HAVSTEN 
(6,161  GRT)  in  quadrant  EE  8915  and  took  aboard  the  captain  and  the 
radio  operator.   Submarine  U  "166"  sank  the.  steamer  EMPIRE  ARNOLD 
(7,049  GRT)  in  quadrant-  EF  77.   The  steamer  belonged  to  a  dispersed 
convoy  and  was  carrying  tanks  and  planes  for  Alexandria.   The 
captain  was  taken  aboard. 

The  submarines  operating  in  the  South  Atlantic  and  in  the  Mediterran- 
ean did  not  report  any  successes. 

For  further  reports,  particularly  concerning  the  refueling  of  sub- 
marines in  the  western  Atlantic,  see  Supplement  to  Submarine  Situa- 
tion in  War  Diary,  Part  3,  Vol.  IV. 


-37- 


CONFIDENTIAL 
4  Aug.  1942 

Special  Items: 

(1)  In  accordance  with  his  report  to  the  Chief,  Naval  Staff  (see 
War  Diary  3  Aug.),  the  Chief,  Communications  Division,  Naval  Staff 
has  issued  a  directive  to  the  Commanding  Admiral,  Submarines  and 
Group  West  (copies' to  the  Second  Admiral,  Submarines  and  to  the 
Communications  Equipment  Experimental  Command),  concerning  the  in- 
stallation of  radar  eqxiipment  with  emergency  antennas  on  those  sub- 
marines in  the  shipyards  of  western  Prance  and  at  home  which  become 
ready  for  operations  during  the  month  of  August.   Regular  antennas 
will  be  installed  on  submarines  which  become  ready  in  September. 

Jamming  transmitters  on  board  submarines  are  both  unsuitable  and 
dangerous.   They  prevent  only  range-finding  but  not  direction-find- 
ing by  planes.   On  the  other  hand,  the  use  of  planes  of  the  3rd  Air 
Force  equipped  with  jamming  transmitters  over  the  approach  routes  is 
considered  very  valuable.   Group  West  is  requested  to  take  further 
action.   It  is  planned  to  set  up  a  jamming  station  on  the  lie  de 
Groix,  but  it  will  be  effective  only  as  far  as  40  miles  from  the 
shore.   The  Communications  Equipment  Experimental  Command  is  prepar- 
ing a  stronger  jamming  transmitter  v/hose  range,  however,  will  still 
be  limited.   Even  a  large  number  of  jamming  transmitters  cannot  re- 
place fighter  planes.        ' 

(2)  The  report  of  the  Naval  Staff,  Submarine  Division  with  regard 
to  increasing  the  number  of  submarines  in  the  operations  zones 
(see  War  Diary  28  Feb.)  has  brought  about  a  statement  by  the  Naval 
Construction  Division  which  partly  contradicts  the  opinion  of  the 
Submarine  Division  and  also  contains  an  answer  to  its  query  con- 
cerning the  number  of  workers  needed  for  each  submarine  repair.  For 
copy  see  l/skl  18922/42  Gkdos.  in  War  Diary,  Part  C,  Vol.  IV. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

6  steamers  totalling  20,000  GRT  were  reported  damaged  in 
an  attack  on  a  convoy  on  the  evening  of  3  Aug.  off  Start  Point.   The 
number  and  type  of  ships  could  not  be  established  due  to  heavy  haze. 
A  large  patrol  vessel  was  damaged  near  Beachy  Head  during  a  fighter- 
bomber  raid  on  the  afternoon  of  4  Aug.   Brighton  was  raided,  with 
well-placed  hits  in  residential  quarters.   During  the  night  of  4  Aug. 
26  German  planes  raided  Swansea.  30  enemy  planes  flew  over  the  Reich 
in  the  Dortmund-Krefeld  area.   80  to  90  planes  were  reported  over  the 
occupied  territories. 

2.  Mediterranean  Theater: 

Nothing  particular  has  been  reported. 

3.  Eastern  Front; 

Air  reconnaissance  was  active  over  the  Caspian  Sea.  Other- 
wise there  was  nothing  to  report. 


-38- 


CONFIDENTIAL 
4  Aug.  1942 

VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

On  3   Aug.,    the    CHARYBDIS   and  a    cruiser  of  the    CAIRO-class 
left   dock  in  Gibraltar.      On  4  Aug.,    the   CAIRO-class   cruiser  was   at 
sea  during   the   day  east   of  Gibraltar,    evidently  for  tests. 

No  other  reports   of  interest   have  been   received. 

2.  Own  Situation,  Mediterranean: 

The  Italian  destroyers  broke  off  their  mine  operations 
off  Marsa  Matruh  because  of  bad  weather.   The  destroyers  have  sailed 
to  Leros.   A  new  date  for  the  operation  has  not  yet  been  set. 

Since  it  must  be  presumed  that  there  are  no  German  magnetic  mines 
left  in  Tobruk  and  Marsa  Matruh,  and  in  view  of  the  fact  that  so  far 
and  probably  also  in  the  near  future  no  mine-sweeping  vessels  are 
available,  the  German  Naval  Command,  Italy  requests  that  2  mine- 
sweeping  planes  be  made  immediately  available  for  Tobruk  and  2  for 
Marsa  Matruh. 

Seeing  that  the  number  of  existing  mine-sweeping 
planes  is  very  limited,  there  is  not  much  chance  that 
the  request  will  be  complied  v/ith. 

Unsuccessful  enemy  submarine  attacks  against  the  steamers  PETSAMO 
and  PLUTO  occurred  on  3  Aug. 

During  a  night  raid  on  Tobruk  on  3  Aug.,  a  landing  barge  loaded  with 
ammunition  was  sunk.   The  ANKARA,  BIXIO,  and  SESTRIERE  convoy  was 
attacked  110  miles  north-northwest  of  Derna  by  enemy  planes  which 
shadov/ed  the  convoy  until  midnight.   So  far,  no  damage  has  been  re- 
ported. 

3.  Transport  of  Supplies  to  North  Africa: 

On  3  Aug.,  a  transport  submarine  from  Italy  arrived,  in 
Tobruk.   4  German  and  7  Italian  landing  barges,  together  with  the 
tanker  SCILLIN,  set  out  on  their  voyage  from  Suda  to  Tobruk. 

Otherwise,  the  transport  of  supplies  is  proceeding  as  scheduled. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

Due  to  interrupted  communications  no  situation  report  has 
been  received. 

Black  Sea: 

Enemy  Situation: 

No  noteworthy  reports  have  been  received. 

Own  Situation: 

According  to  the  final  report  from  the  Admiral,  Black  Sea 
4  landing  barges  reached  the  Kasantip  Bay,  after  breaking  through 


-39- 


CONFIDENTIAL 
4  Aug.  1942 

the  Strait  of  Kerch.   In  addition  to  the  2  landing  barges  which 
turned  about  when  approaching  Yenikale,  in  order  to  put  into  Kerch, 
2  vessels'  had  already  turned  back  at  Cape  Takil  because  of  engine 
failure-.   The  hit  reported  on  one  of  the  landing  barges  entering 
Kerch  was  caused  by  a  mine.   The  landing  barges  in  Kerch  which  were 
ready  to  sail  were  supposed  to  get  through  to  the  Sea  of  Azov  on  the 
evening  of  3  Aug.   So  far,  no  report  about  the  execution  of  this 
plan  has  been  received.   Whether  any  further  landing  barges  will  be 
brought  out  of  the  Black  Sea  will  depend  on  the  decision  of  Army 
Group  A  concerning  the  execution  of  operation  "Bluecher". 

On  2  Aug.,  a  big  fire  broke  out  in  Sevastopol.   Enemy  air  raids 
staged  simultaneously  on  Feodosiya,  Ivanbaba,  and  Genichesk  on  2  Aug, 
caused  damage  to  buildings  and  property.   Convoy  operations  are  pro- 
ceeding according  to  plan.   The  steamer  ARDEAL,  which  had  been 
beached  after  being  torpedoed  off  Odessa  on  12  Jun.,  has  been  towed 
into  port. 

Special  Items : 

(1)  Group  South  has  submitted  the  first  detailed  plan  and  the 
reasons  for  its  preliminary  demands  for  operations  in  the  Caspian 
Sea.   For  the  Naval  Staff's  reply  to  Group  South  and  its  correspond- 
ing directive  to  the  Quartermaster  Division  see  1/Skl  I  op  18776/42 
Gkdos.  In  War  Diary,  Part  C,  Vol.  XlVa. 

(2)  Group  South  has  notified  the  stations  under  its  command  of  its 
preliminary  plans  for  the  transport  traffic  in  the  Black  Sea  during 
the  ice  period.   For  copy  see  1/Skl  19067/42  Gkdos.  in  War  Diary, 
Part  C,  Vol.  XlVa. 


IX.   Situation  East  Asia 


Nothing  to  report. 


X.   Army  Situation; 

1.   Russian  Front; 

Army  Group  A; 

Lively  air  activity  is  reported  from  the  Kerch  area. 

South  of  Kushchevka  the  enemy  is  falling  back  before  the  entire  front 
in  a  southerly  direction.   In  the  pursuit  our  troops  took  Veselaya 
and  Nyezamayevskaya.   SS  troops  occupied  Kropotkin.   A  Slovenian 
motorized  division  has  taken  over  flank  protection  to  the  north  and 
northwest.   The  bridgehead  north  of  Armavir  has  been  further  re- 
inforced.  Nikolayevsk  has  been  taken. 

Army  Group  B; 

In  the  area  Orlovka-Remontnaya  our  troops  penetrated  as  far 
as  the  railroad.   Krugliakov  and  Aksai  have  been  captured.   Enemy 
pressure  in  the  Kalach  area  has   eased.   A  tank  attack  southeast  of 


-40- 


f 


CONFIDENTIAL 


4  Aug.  1942 


Ketskaya  was  repulsed.   Assault  troops  and  artillery  are  active  on 
both  sides  In  the  area  north  and  northwest  of  Voronezh. 

Central  Army  Group: 

East  of  Rzhev,  strong  enemy  infantry  and  tank  forces  have 
launched  an  attack  on  a  wide  front  south  of  the  Volga  River,  break- 
ing through  our  main  line  of  resistance  on  a  front  about  15  km  wide. 
It  is  to  be  expected  that  the  enemy  will  bring  up  further  heavy 
forces  into  the  breach.   Tank  reinforcements  from  the  area  around 
Vyazma  are  being  rushed  to  the  9th  Army.   After  very  heavy  artillery 
preparation,  superior  Russian  forces  have  launched  another  attack 
north  of  Rzhev,  directing  their  main  thrust  against  Belkovo.   Here- 
our  troops  succeeded  in  holding  the  main  line  of  resistance^   It  is 
to  be  expected  that  here,  too,  the  enemy  will  launch  further  heavy 
attacks. 

Northern  Army  Group:  '  • 

Local  fighting  is  reported. 

2.  Finnish  Front: 

No  noteworthy  fighting  is  reported,, 

3.  North  Africa? 

Enemy  reconnaissance  activity  as  usual.   The  enemy  has 
intensified' his  air  and  ground  reconnaissance.   Our  positions  were 
attacked  from  the  air  on  several  occasions.  ' 


-41- 


CONFIDENTIAL 
5  Aug. 

Items  of  Political  ii,.jji'tance 

In  connection  with  a  Second  Front  In  Europe,  the  United  Press  reports 
about  a  mass-meeting  in  Montreal  calling  for  troop  mobilization  in 
Canada  in  order  to  bring  about  a  Second  Front. 

In  a  special  article,  the  London  Observer  stresses  the  need  for  im- 
mediate action.   It  contends  that  the  Russian  ally  is  in  mortal  danger 
and  has  been  v/aiting  13  months  for  the  promised  aid.   It  is  "now  or 
never".   Once  the  Russian  armies  withdraw  behind  the  Volga  or  as  far  as 
the  Ural  mountains,  Moscow  will  have  ceased  to  play  a  part  in  the  war. 

In  the  secret  session  of  the  House  of  Commons  on  4  Aug.,  Attlee  de- 
livered a  statement.   The  fact  that  Churchill  himself  did  not  speak 
corroborates  the  rumor  that  he  is  in  Moscow,  where,  incidentally 
Bullitt,  too,  is  said  to  have  arrived  as  a  special  emissary  of  Roose- 
velt.  If,  in  addition,  it  is  kept  in  mind  that  Churchill  is  in  the 
habit  of  throwing  the  weight  of  his  personality  into  the  scale  when- 
ever a  critical  situation  calls  for  extraordinary  decisions,  then  his 
Moscow  trip  becomes  more  and  more  credible. 

Great  Britain: 

__________ _____  , 

In  the  House  of  Lords,  the  Government  explained  that  the  radio  address 
of  the  British  Air  Marshal  to  the  German  people  was  in  line  with  the 
Government's  policy  proclaimed  by  Churchill  some  time  ago. 

India : 

In  view  of  the  impending  Congress  Party  resolution  which  both  Britain 
and  America  are  awaiting  with  understandable  anxiety,  the  publication 
by  the  British  Indian  Government  of  the  confiscated  draft  of  the 
resolution  has  undoubtedly  been  an  effective  propaganda  move  to  in- 
fluence public  opinion  agains.t  Gandhi,  especially  in  America,  but  even 
in  India.   In  contrast  to  the  later  version  which  was  toned  down,  the 
draft  in  question  contains  the  wish  for  negotiations  with  Japan.   In 
any  case,  the  Indian  Congress  leaders  Gandhi,  Nehru,  and  Azad  con- 
sidered it  necessary  to  issue  statements  intended  to  mitigate  the  un- 
favorable impression  created  by  the  publication  of  the  draft.   Thus, 
while  Congress  was  just  about  to  pass  the  resolution,  they  were  man- 
euvered into  a  defensive  position.   It  remains  to  be  seen  how  success- 
ful this  step  on  the  part  of  the  Government  will  prove  with  Congress 
circles.   In  any  case,  the  strong  sympathies  which  Gandhi  used  to  en- 
joy in  America  have  been  considerably  weakened.   Incidentally,  the 
confiscated  documents  furnish  also  the  apparent  legal  basis  for  pro- 
secution of  Gandhi  as  a  person  guilty  of  high  treason. 

The  British  Government  appears  in  any  event  to  be  determined  to  counter- 
act by  all  means  any  movement  that  may  break  out  in  India,  while  con- 
tinuing to  count  heavily  on  lack  of  unity  among  the  natives  themselves. 
In  view  of  this  state  of  affairs,  the  German  press  has  undoubtedly 
been  justified  in  showing,  as  directed,  extreme  reserve  in  discussing 
the  Indian  problem,  since  it  no  longer  appears  certain  whether  Gandhi's 
draft  for  India's  freedom  will  be  accepted  at  all. 

U.S.A.: 

The  Government  is  planning  very  energetic  measures  to  step  up  war 
production.   "Total  mobilization  of  the  nation"  is  to  be  achieved  by 
the  following  measures: 


-42- 


» 


CONFIDENTIAL 
5  Aug,  1942 

1.  Universal  mobilization  of  a-11  workers,  assigning  the  best 
skilled  workers  to  war  production',  and  if  necessary,  mobilization  of 
all  able-bodied  women. 

2.  Strict  control  over  production  and  the  use  of  raw  materials. 

3.  Strict  control  over  private  industry;  if  necessary,  shutting 
down  poorly  managed  or  otherwise  unprofitable  plants. 

In  view  of  the  Congressional  elections  in  fall  1942,  Willkie,  speak- 
ing to  both  Democrats  and  Republicans,  has  asked  for  a  cessation  of 
party  disputes  in  all  matters  concerning  war  during  the  campaign. 


Special  Items: 

I.  The  Commander  in  Chief,  Navy  has  commended  the  captain  and  the 
crew  of  destroyer  Z  "37'*  for  their  extensive  and  successful  coopera- 
tion in  completing  the  vessel  which  made  it  possible  to  commission 
her  on  schedule.   The  Commander  in  Chief,  Navy  told  the  Fleet,  the 
Groups,  and  the  commanding  admirals  that,  in  view  of  the  prevailing 
manpower  shortage,  he  expects  the  example  set  by  destroyer  Z  "37"  to 
be  widely  followed. 

II.  The  Naval  Representative  on  the  Armed  Forces  High  Command, 
Operations  Staff  has  transmitted  a  memorandum  of  the  Army  Representa- 
tive on  the  Armed  Forces  High  Command,  Operations  Staff  concerning 
Central  Africa  as  an  Anglo-American  supply  and  operations  base.  Ap- 
parently, the  memorandum  is  based  in  part  on  views  of  the  Foreign 
Office  which  are  well  known  to  the  Naval  Staff. 

The  Chief,  Operations  Staff,  Armed  Forces  High  Command,  General  Jodl, 
has  pointed  out  that  the  evaluation  of  the  situation  shows  the  need 
for  more  submarines  to  operate  against  the  route  U.S. A. -Central 
Africa.   The  Naval  Staff  Operations  Division  will,  in  turn,  submit  a  . 
brief  evaluation  of  the  situation  to  the  Armed  Forces  High  Command, 
Operations  Staff. 

For  copy  of  the  report  see  l/Skl  19186/42  Gkdos.  in  War  Diary,  Part 
C,  Vol.  I. 

III.  Concerning  the  French  forces  in  Alexandria,  the  German  Armistice 
Commission,  France,  acting  upon  a  directive  of  the  Armed  Forces  High 
Command,  Operations  Staff  of  19  Jul.  (see  War  Diary  19  Jul.),  reports 
that  it  has  transmitted  to  the  French  the  following  communication: 

"The  German  Armistice  Commission,  in  agreement  with  the  Italian 
Armistice  Commission,  makes  known  that  the  French  naval  forces,  upon 
leaving  port,  should  try  to  reach  Bizerte  as  the  nearest  French 
harbor.  Should  the  French  forces  in  Alexandria,  for  some  reason  or 
other,  .  be  unable  to  reach  Bizerte,  they  will  be  assured  of  adequate 
shelter  and  supplies  in  the  sea  area  of  southern  Greece  or  the  Aegean 
Sea.   If  such  a  case  arises,  they  will  be  notified  in  due  time  of  the 
names  of  the  harbors  which  they  are  to  enter,  as  well  as  of  the 
courses  on  which  they  are  to  approach  those  harbors." 

IV.  The  Foreign  Navies  Branch  Naval  Intelligence  Division  reports 
about  docking  facilities  for  British  warships  overseas  in  New  Analysis 
"Foreign  Navies",  No.  37/42. 


-43- 


CONFIDENTIAL 


5  Aug.    1942 


V.   A  routine  report  on  convoy  and  transport  operations  completed  in 
the  area  of  Group  North  between  1  Jul.  and  31  Jul.  1942  (see  l/Skl 
19148/42  Gkdos.  in  War  Diary,  Part  B,  Vol.  V)  shows  a  total  of 
1,658  merchant  ships  (4,507,000  GRT )  convoyed  and  133,895  soldiers, 
2,624  vehicles,  and  504,059  tons  of  Armed  Forces  cargo  transported. 
Only  14  of  our  vessels  were  total  losses  as  a  result  of  enemy  action 
including  mines. 


— ■  .« 

Situation  5  Aun;.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

Indian  Ocean: 

On  1  Aug.,  Japanese  reconnaissance  planes  sighted  1  battle- 
ship of  the  WARSPITE  class,  2  aircraft  carriers,  and  9  small  cruisers 
or  destroyers  60  miles  northeast  of  Ceylon.  Two  cruisers  were  ob- 
served elsewhere. 

The  Consulate  in  Lourenco  Marques  reports  that,  since  Durban  has 
primarily  become  a  navy  base,  Lourenco  Marques  is  being  used  to  a 
greater  extent  as  a  supply  base  for  enemy  ships,   including  those 
carrying  materiel. 

2.  Own  Situation: 


waters. 


No  reports  have  been  received  from  our  vessels  in  foreign 


Ship  "10"  is  Informed  of  the  latest  positions  of  the  ships  she  will 
use  for  cover  names  by  Radiogram  2223. 

All  vessels  in  foreign  waters  were  informed  about  the  British  hospital 
ship  OPHIR  via  Radiogram  1153. 

A  report  on  the  enemy  situation  was  issued  via  Radiograms  0018,  Q636, 
and  1845. 


II.   Situation  West  Area 

1.   Enemy  Situation: 

There  is  no  doubt  that  recently  the  enemy  has  been  concen- 
trating his  ground  mine-laying  operations  on  the  area  off  the  coast 
of  western  France.   Only  Brest  continues  to  be  spared.   Few  ground 
mines  were  laid  in  the  Channel  area.   The  Baie  de  la  Seine  remained 
free  of  mines. 

Despite  favorable  weather  conditions,  air  reconnaissance  failed  to 
yield  any  results. 


-44- 


CONFIDENTIAL 


5  Aug.  1942 


2.    Own  Situation: 

Atlantic  Coast: 

On  the  night  of  4  Aug.,  energy  planes  were  active  in  the 
area  over  Brest,  Lorient,  St.  ITazaire,  and  La  Pallice.   No  bombs  were 
dropped.   Mine  operations  are  probable.   Naval  anti-aircraft  guns 
shot  down  1  plane  in  the  vicinity  of  St.  Nazaire.   The  rivers  Loire 
and  Gironde  are  temporarily  closed  to  traffic  because  of  mine  danger. 

At  1330  the  Japanese  submarine  I  "30"  entered  Lorient  after  having 
been  met  the  day  before,  as  planned,  by  patrol  forces  of  the  Command- 
ing Admiral,  Defenses,  West  and  cf  the  Air  Commander,  Atlantic  Coast. 
The  mine-detonating  vessel  "136"  succeeded  in  sweeping  4  mines  in  the 
St.  Nazaire  area.   Due  to  heavy  damage,  the  vessel  is  out  of  commis- 
sion. 

Channel  Coast: 

The  SCIIWABENLAND  has  transferred  from  Le  Havre  to  Boulogne 
without  incidents. 

The  battery  "Creche  I"  fired  at  vessels  which  had  been  located  south- 
west of  Boulogne,  presumably  PT  boats.   Effects  were  not  observed. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

During  the  night  of  4  Aug.,  enemy  planes  repeatedly  at- 
tacked the  convoy  of  the  patrol  vessel  "2011"  in  quadrant  AN  8316 
without  success.   During  the  same  night,  enemy  planes  were  also 
active  over  the  area  Terschelling-Schiermonnikoog  and  farther  to  the 
east  up  to  Heligoland  and  Scharhoern.   The  planes  probably  dropped 
aerial  mines. 

The  Swedish  steamer  DIANA  from  the  Elbe -Ems  convoy  was  damaged  by  a 
ground  mine  and  towed  away.   Mine-detonating  vessels  swept  1  ground 
mine  off  Terschelling  and  another  one  south  of  Heligoland.   Due  to 
bad  "..leather,  operations  by  mine  sweeper  flotillas  were  either  broken 
off  or  not  started. 

Around  midnight  on  5  Aug.,  enemy  planes  unsuccessfully  bombed  our 
convoy  northwest  of  Terschelling. 

2.  Norway,  Arctic  Ocean: 

Enemy  Situation: 

Radio  intelligence  reports  that  since  1  Aug.  the  battleship 
NELSON  has  been  observed  in  the  cHoee  vicinity  of  Scapa.   Air  re- 
connaissance found  lively  patrol  activity  in  the  eastern  part  of  the 
Arctic  Ocean. 


-45- 


CONFIDENTIAL 
5  Aug.  1942 

Own  Situation; 

On  orders  of  the  Admiral,  Arctic  Ocean,  the  PT  boat  group 
at  Narvik  was  dissolved  on  4  Aug.   The  3  boats  have  been  reassigned 
to  the  6th  PT  Boat  Flotilla  and  are  transferring  on  5  Aug.  to  Harstad 
in  order  to  join  the  flotilla  for  their  return  home.   On  4  Aug., 
enemy  planes  were  reported  active  over  Stavanger  and  the  Bergen  area. 

No  incidents  occurred  during  convoy  operations. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation: 

Submarine  U  "119'*  has  transferred  to  Frederikshavn  in  order 
to  carry  out  mine  operation  "Duesseldorf" . 

The  courier  plane  from  Oslo  to  Copenhagen  sent  a  most  unlikely  re- 
port of  sighting  and  chasing,  a  submarine  north  of  Skagen.   Otherwise, 
no  incidents  were  reported. 

Ih  the  eastern  part  of  the  Baltic,  an  enemy  submarine  sank  the 
Finnish  steamer  P0HJA1ILAIITI  (681  GRT)  near  Backofen  (south  of  V/lndau). 

Unfavorable  weather  conditions  badly  hampered  operations  of  the 
Commander,  Mine  Sweepers,  Baltic  Sea  in  the  Gulf  of  Finland.  Mine 
operation  "Seehund  I"  had  to  be  broken  off.   Convoy  operations  pro- 
ceeded as  scheduled  without  any  incidents. 


V.   Submarine  Warfare 

1.  Enemy  Situation: 

Radio  intelligence  believes  that  on  4  Aug.  an  engagement 
with  the  enemy  took  place  in  the  Freetown  area.   One  vessel  sent  2 
tactical  radio  messages  to  Freetown,  the  first  of  which  was  repeated 
to  5  ships,  presumably  escort  vessels. 

A  submarine  attack  report  was  intercepted  400  miles  northeast  of  New- 
foundland.  Submarine  sighting  reports  were  sent  from  locations  40 
miles  southeast  of  Cape  Breton  and  85  miles  south  of  Halifax.  Further 
submarine  sighting  reports  were  intercepted  from  the  waters  around  the 
West  Indies.  \ 

2.  Own  Situation: 

Some  400  miles  northeast  of  Newfoundland,  submarine  U  "593" 
intercepted  an  eastbound  convoy  of  about  23  steamers  escorted  by 
corvettes  and  destroyers.   Further  submarines  have  been  sent  into 
action.   Contact  was  maintained  throughout  the  day.   So  far,  sub- 
marine U  "593"  has  reported  sinking  one  5,000  GRT  steamer  from  that 
convoy. 

-46- 


CONFIDENTIAL 


5  Aug.  1942 


Submarine  U  "254"  reported  sinking  a  4,500  GRT  steamer  on  a  130° 
course  about  150  miles  southeast  of  Reykjanes, 

In  accordance  with  size  regulations,  submarine  U  "510"  sank  a  5,300 
GRT  Uriaguayan  steamer  proceeding  from  Montevideo  to  New  York  with  a 
cargo  of  corned  beef.   The  captain  was  taken  aboard. 

The  Commanding  Admiral,  Submarines  pointed  out 
correctly  that  even  if  the  sinking  is  In  accordance 
with  prize  regulations,  captains  of  neutral  ships 
must  not  be  taken  aboard.  , 

Of  the  submarines  operating  in  the  South  Atlantic,  U  "213"  is 
assumed  to  be  lost.   No  successes  have  been  reported  either  by  these 
boats  or  by  those  in  the  Mediterranean. 


VI.   Aerial  Warfare  • 

1.  British  Isles  and  Vicinity: 

During  the  day,  armed  reconnaissance  was  carried  out  and 
fighter-bombers  raided  a  town  on  the  coast.   On  the  night  of  4  Aug., 
Swansea,  Portland,  Bristol,  and  Weston  were  raided  as  alternate 
targets.   Hits  were  well  placed.   On  the  night  of  5  Aug.,  our  planes 
raided  targets  in  England  marked  for  demolition. 

42  enemy  planes  flew  over  the  Reich  area,  103  over  the  western 
occupied  areas.   The  attacks  were  not  concentrated  on  any  one  local- 
ity. The  planes  penetrated  as  deep  as  Heligoland,  Bingen,  and 
Giessen.   The  Kloeckner  Works  in  Troisdorf  were  badly  damaged. 

2.  Mediterranean  Theater; 

Small  forces  carried  out  nuisance  raids  on  Malta. 

The  forces  of  the  Air  Commander,  Africa  flew  fighter  and  reconnais- 
sance missions  and  attacked  motor  vehicle  concentrations.   A  raid  on 
Suez,  set  for  the  night  of  4  Aug.,  could  be  made  by  3  planes  only, 
since  enemy  planes  attacked  our  airfields  during  the  take-off.   200 
cubic  meters  of  Navy  fuel  burned  up  as  a  result  of  enemy  air  raids 
on  Tobruk.   Heavy  and  acciirate  anti-aircraft  gunfire  was  observed  at 
Suez.   Numerous  enemy  fighters  covered  Cairo  and  the  Suez  Canal  at 
10,000  m  altitude. 

Increasing  attacks  by  enemy  fighter  and  bomber  formations  on  the 
Africa  Corps,  as  well  as  the  complete  inactivity  of  the  strong 
fighter  forces  on  Malta,  lead  to  the  conclusion  that  a  new  supply 
operation  for  Malta  is  either  due  or  under  way. 

For  air  reconnaissance  results  in  the  eastern  Mediterranean  see  Enemy 
Situation,  Mediterranean. 

3.  Eastern  Front: 

Strong  support  of  the  attacking  armies  and  operations  in  the 
northern  part  of  the  front  at  the  point  of  enemy  penetration  are  re- 
ported. 


-47- 


CONFIDENTIAL 
5  Aug.  1942 

An  eneny  mine  sweeper  operating  off  Lavansaari  was  apparently 
damaged. 

For  a  report  on  our  air  reconnaissance  activity  over  the  Caspian  Sea 
see  Enemy  Situation,  Black  Sea. 

♦ 

4.    Special  Item; 
-  '  .# 

According  to  a  report  of  the  Naval  Representative  on  the 
Air  Force  Operations  Staff,  23,424  men  and  1,238  tons  of  supplies 
were  transported  to  North  Africa  by  air  during  the  period  from  17  to 
31  Jul.  An  impressive  achievement! 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

The  EAGLE,  the  CHARYBDIS,  and  4  destroyers  have  left 
Gibraltar,   Their  course  is  not  known. 

Submarines  were  located  off  Cape  Dukato,  southwest  of  Spalato,  and 
north  of  Sidi  Barrani. 

In  the  evening,  radio  intelligence  located  the  hospital  ship 
SOMMERSET SHIRE  on  a  westerly  course  northeast  of  Port  Said.   Air 
reconnaissance  reported  that  in  the  morning  3  destroyers  and  2 
steamers  were  proceeding  east  of  Port  Said  on  a  southerly  course, 
while  3  other  naval  vessels  were  northeastbound.   Aerial  photographs 
show  the  following  ships: 

In  Alexandria:    3  tankers,  10  steamers; 

In  Port  Said:     1  warship  dummy,  1  cruiser,  4  destroyers, 

4  submarines,   25  steamers,  1  tanker; 

In  Suez:  1  cruiser,  4  destroyers,*  1  torpedo  boat, 

33  steamers,  8  tankers,  and  other  vessels 

2.  Own  Situation,  Mediterranean: 

At  0650,  motor  mine  sweeper  R  "12"  was  attacked  by  6  enemy 
planes  and  suffered  casualties.  Fighter  protection  was  missing.  An 
Italian  report  states  that  240  survivors  were  rescued  from  the  motor 
ship  M0NVTS0.   6  men  are  missing. 

For  the  brief  report  of  motor  mine  sweeper  R  "11"  about  an  enemy  air 
raid  on  Bardla  during  the  night  of  1  Aug.,  see  Telegram  1945. 

The  German  Naval  Command,  Italy  reports  that  the  Italian  mine  opera- 
tion off  Marsa  Matruh  will  be  resumed  at  0700  on  7  Aug. 

Mining  of  French  territorial  waters  off  Cape  Bon 

In  the  meantime,  the  Fuehrer  has  ordered  the  German  forces  to  direct 
their  efforts  toward  an  effective  mining  of  the  entire  Strait  of 
Sicily.  To  this  end,  it  is  desirable  to  reinforce  the  mine  fields 
laid  so  far,  and  to  lay  mines  off  Cape  Bon  as  soon  as  possible.   Dis- 
cussions with  the  Foreign  Office,  aimed  at  clarifying  the  question  of 


-48- 


CONFIDENTIAL 
5  Aug.  1942 

whether  the  French  or  the  Italians  are  to  lay  a  permanent  barrage, 
are  still  in  progress.   It  will  be  necessary  to  wait  for  the  results 
of  these  discussions.   Pending  clarification,  the  Naval  Staff  con- 
siders it  advisable  that  Italy  make  all  necessary  preparations  so 
that,  in  case  of  danger,  a  mine  field  can  be  quickly  laid  without, 
first  asking  the  French. 

The  Naval  Staff  has  informed  the  German  Naval  Command,  Italy  accord- 
ingly, making  reference  to  the  Command's  last  report  in  this  matter 
(see  War  Diary  22  Jul.).   At  the  same  time,  the  Naval  Staff  directed 
the  Command  to  answer  the  Italian  objection  by  stating  that  this 
measure  does  not  require  immobilizing  the  Italian  vessels  "for  an 
indefinite  period",  since  it  is  meant  only  as  a  temporary  expedient 
until  either  the  French  or  the  Italians  take  over  the  mine-laying 
operations. 

According  to  a  communication  of  4  Aug.  from  the  Naval  Representative 
on  the  Armed  Forces  High  Command  Operations  Staff,  the  Armed  Forces 
High  Command  intends  to  order  the  German  General  at  Italian  Head- 
quarters to  present  to- the  Italian  High  Command,  together  with  the 
German  Naval  Command,  Italy,  the  request  for  reinforcing  the  mine 
fields  in  the  entire  Strait  of  Sicily,  and  to  emphasize  its  particular 
importance  to  the  German  Armed  Forces.   This  does  not  affect  the 
question  of  mining  the  French  territorial  waters.   The  Naval  Staff  has 
given  its  consent  as  requested. 

3.  Transport  of  Supplies  to  North  Africa; 

Transport,  of  supplies  from  Italy  to  North  Africa,  from 
Greece  to  North  Africa,  and  along  the  North  African  coast  is  pro- 
ceeding according  to  plan. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

Destroyer  ZG  "3"  ha 3  brought  the  damaged  submarine  U  "9  7" 
into  the  port  of  Salamis.  : 

Black  Sea: 

Enemy  Situation: 

Air  reconnaissance  reported  that  a  convoy  composed  of  2 
tankers,  1  steamer,  and  7  escort  vessels  has  departed  from  Tuapse  in 
southeasterly  direction.   On  4  Aug.,  ships  were  observed  gathering  in 
the  Tamanskaya  Bay,  presumably  for  the  purpose  of  breaking  through 
southward  during  the  night . 

Air  reconnaissance  located  5  submarines,  7  patrol  vessels,  as  well  as 
numerous  lighters,  freight  barges,  paddle  steamers,  and  motor  tugs 
in  Astrakhan.   One  submarine,  2  tankers,  2  large  lighters,  and  6 
small  steamers  were  riding  at  anchor  in  Makhach  Kala, 

Own  Situation; 

On  4  Aug.,  an  Italian  subchaser  unsuccessfully  attacked  a 
submarine  south  of  Feodosiya,  while  a  landing  barge  failed  in  an 
attack  against  another  submarine  south  of  Odessa.   Likewise  on  4  Aug. 
the  tanker  MONTAN  24  sank  as  a  result  of  a  mine  hit  west  of  Ochakov. 
On  the  night  of  3  Aug.,, motor  mine  sweeper  R  "163"  and  1  landing  . 


-49- 


CONFIDENTIAL 
5  Avis.  1942 

barge  broke  through  from  Kerch  in  a  northerly  direction  as  planned. 
On  the  same  night,  10  enemy  planes,  attacking  in  v/aves,  bombed 
Kazantip  bay  and  village.   The  attack  was  evidently  aimed  at  the 
landing'  barges  and  motor  mine  sweepers  which  had  broken  through  the 
Strait  of  Kerch  but  were  already  on  their  way  to  Genichesk  at  the 
time  of  the  air  raid. 

On  the  same  night,  a  heavy  air  raid  was  carried  out  by  the  enemy  on 
Marirupdl  which  was  simultaneously  under  gunfire  from  3  or  4  vessels. 
Large  fires  were  caused.   On  5  Aug.,  3  landing  barges  transferred 
from  Genichesk  to  Mariupol. 

Army  Group  A  reports  that  the  main  effort  is  again  concentrated  on 
operation  "Bluecher".   3  landing  barges  are  considered  sufficient 
for  the  transport  of  supplies  from  Mariupol  to  the  Don.   Preparation; 
for  operation  "Bluecher"  will  be  completed  by  the  Army  and  the  Navy 
by  10  Aug.   Convoy  operations  in  the  Black  Sea  are  proceeding  ac- 
cording to  plan. 

The  Kavy  Liaison  Officer  at  the  Army  General  Staff  reports  that  the 
Quartermaster,  Rumania  has  been  directed  to  prepare  the  vessels  for 
transport  operations  between  the  Crimea  and  ITovorossisk  so  that  the 
landing  barges  can  be  released  for  other  missions.  For  details  see 
Telegram  1345. 

5.   Situation  France: 

According  to  a  report  of  the  German  Armistice  Commission, 
France,  the  French  have  called  attention  to  the  fact  that  torpedo 
boat  FOUG'JEUX  was  able  to  free  the  captured  steamer  MITIDJA  only  be- 
cause the  crew  sent  a  radio  message  instead  of  scuttling  the  steamer 
with  undue  haste.   In  view  of  this  favorable  experience,  the  French 
are  requesting  for  their  steamers  permission  to  issue  submarine 
sighting  reports.   For  further  action  on  this  request  see  War  Diary, 
Part  C,  Vol.  VIII. 


ViII.  Situation  East  Asia 
Ilothing  to  report. 


IX.   Army  Situation 

1 .  Russian  Front : 

Army  Group  A; 

In  the  Kuban  area,  our  infantry  divisions  advancing  in  pur- 
suit of  the  enemy  have  reached  the  line  Kanyevskaya-Tikhoryetsk.  The 
enemy  is  holding  the  southern  shore  of  the  Kuban  River  near  Kropotkin, 
The  bridgehead  north  of  Armavir  was  widened  and  reinforced  with  heavy 
weapons.   The  bridge  over  the  Kuban  has  been  completed.   Our  troops 
occupied  the  railway  junction  ITyevinnomysk  south  of  Voroshilovsk.  The 
railway  bridge  was  captured  undamaged.   It  seems  that  the  destruction 
caused  by  the  fleeing  enemy  is  not  as  thorough  as  before. 


-50- 


5  Aug.  1042 

Amy  Group  D; 

South  of  Rercontnaya,  our  divisions  have  launched  an  attach 
against  unweakoned  enemy  forces.   The  notorized  and  Panzer  divisions 
which  had  thrust  northeast  of  Ilotelnikov  took  Plotovitoye  against 
strong  enemy  resistance.   Northwest  of  Kalach,  our  troops  repulsed 
heavy  attacks.   The  enemy,  supported  by  tanks,  is  attacking  southeast 
of  hletskaya.   Southeast  of  Kazanskaya,  detachments  of  enemy  forces 
have  succeeded  in  crossing  the  Don  in  westerly  direction.   Counter- 
attacks are  under  way.   Enemy  attacks  west  of  Livny  have  been  repulsed, 

Central  Army  Group : 


The  enemy  succeeded  in  widening  the  point  of  penetration 
southeast  of  Rzl-icv  and  in  advancing  as  far  as  the  ro.r-d  from  Dukontov  to 
Cubtsov.   Enemy  attacks  east  and  north  of  Rzhev  were  repulsed. 

Ilorthorn  Army  Group : 

Southeast  of  Stnraya  Hussa  our  troop.0  are  attacking  in  order 
to  annihilate  enemy  forces  which  had  infiltrated  the  area  east  of 
Gramuchcvo.   South  of  Leningrad,  our  artillery  is  in  action  against 
enemy  troop  movements. 

2 .    Finnish  Front : 

On  the  Loukhi  front,  our  forces  repulsed  enemy  counterattacks 
against  our  recently  won- hill  position. 

3 •   North  Africa : 

4 

On  the  night  of  4  Aug.,  enemy  patrol  troops  were  very  active 
in  the  coastal  sector.   During  the  day,  artillery  and  patrol  activity 
was  normal  along  the  entire  front.   According  to  photographic  recon- 
naissance, the  oasis  of  Parafra  Is  not  occupied. 


-51« 


COIIFIDEITTIAL 
6   Aug.    IP 4 2 

Iter.s  of  Political  Importance 

The  British  Government  has  neither  confirmed  nor  denied  Churchill's 
trip  to  Moscow.   General  Bradley,  the  former  commander  of  the  U.S. 
Army  Air  Forces,  was  sent  to  Moscow  Immediately  after  Litvinov's 
visit  in  Washington  to  give  Stalin  a  personal  letter  from  Roosevelt. 
He  arrived  in  I.'oscow  on  4  Aug.   The  visit  is  interpreted  by  our 
sources  as  having  to  do  with  increased  American  aid  to  Russia. 

In  connection  with  the  question  of  establishing  a  Second  Front,  Anglo- 
American  discussions  are  being  carried  on.   It  is  said  that  the 
secretiveness  of  the  Red  Army  commanders  makes  it  extremely  diffi- 
cult to  work  out  such  a  plan  and  practically  prohibits  risking  the 
operation.   The  Economist,  mouthpiece  of  British  financial  circles, 
issued  an  explicit  warning  against  the  venture  of  a  Second  Front, 
saying  that  it  would  be  sheer  madness  to  cross  the  Channel  before  the 
arrival  of  huge  masses  of  American  troops  in  England  and  outright 
suicide  to  try  to  run  against  the  enemy's  modern  coastal  defenses. 
The  President  of  the  United  Automobile.  Workers  of  the  CIO  spoke  in  a 
radio  broadcast  in  favor  of  the  Second  Front. 

The  representative  of  the  French  Government  in  occupied  France,  De 
Brinon,  declared  that  the  only  Second  Front  which  Churchill,  Roose- 
volt,  and  .Stalin  might  be  able  to  establish  consists  of  acts  of  in- 
surrection in  France  instigated  by  them. 

Great  Britain; 

In  the  House  of  Commons,  Eden  made  known  the  exchange  of  notes  be- 
tween the  Czechoslovak  Government  in  Exile  and  the  British  Govern- 
ment, confirming  Britain's  withdrawal  from  the  stipulations  of  the 
Munich  Pact  with  regard  to  Germany's  frontiers. 

Charles  Kennedy  Purvis  has  been  appointed  deputy  to  the  First  Lord  of 
the  Admiralty  so  that  the  First  Lord  of  the  Admiralty  may  be  relieved 
for  operational  assignments. 

India: 

Under  the  pressure  of  the  Government's  publication  of  the  first  draft 
described  on  5  Aug.,  Gandhi  had  the  committee  of  the  Congress  Party 
accept  a  new  draft  on  5  Aug.   This  draft  reiterates  the  demand  for 
British  withdrawal  and  Indian  independence;  it  adds,  however,  that, 
after  the  independence  has  been  granted,  the  provisional  government 
of  India  will  unconditionally  join  the  Allies  and  will  put  up  armed 
resistance  against  the  Japanese  or  any  other  aggressor.   The  Congress 
will  meet  on  7  Aug.   London  has  restated  the  Government's  position 
to  the  effect  that  a  campaign  of  disobedience  will  by  no  means  be 
tolerated,  that  an  immediate  transfer  of  power  to  India  is  out  of  the 
question,  and  that  the  Government  adheres  to  the  proposals  trans- 
mitted by  Cripps . 

Turkey ; 

On  5  Aug.,  the  Prime  Minister  introduced  his  new  Cabinet  to  the  Na- 
tional Assembly.   He  declared  that  it  is  the  goal  of  the  Government 
to  keep  the  country  out  of  war,  while  at  the  same  time  putting  it  in 
a  position  to  defend  itself  against  any  attack  on  its  independence  or 
its  territory.   To  prove  the  "consistancy"  of  Turkey's  foreign  policy, 
with  its  definitely  positive  neutrality,  Soracoglu  pointed  to  the 
treaty  with  Great  Britain  and  the  Turco-German  agreement.   All  in  all, 


-52- 


CONFIDENTIAL 
6  Aug.  1942 

one  cannot  escape  the  impression  that  Turkey  is  still  far  from  break- 
ing her  pact  with  Britain. 

U.S.A.: 

Baldwin,  a  military  correspondent  of  the  New  York  Times,  states  in  an 
article  published  in  the  Argentine  magazine  Nacion  that  a  large-scale 
air  offensive  against  Germany  depends  on  the  outcome  of  the  Battle  of 
the  Atlantic,  since  gasoline  and  bombs,  as  well  as  plane  replacements 
must  be  brought  to  England  by  sea.  In  any  case,  nightly  large-scale 
attacks  are  entirely  out  of  the  question  this  year. 

Japan : 

In  the  opinion  of  Allied  military  circles,  the  Japanese  operations 
in  the  Kokoda  area  (on  New  Guinea)  constitute  a  serious  threat  to 
Port  Moresby.   Military  circles  in  the  U.S.A.  expect  the  Japanese  to 
launch  an  attack  on  Alaska  from  the  Aleutians.   On  30  Jul.,  Japanese 
Fleet  forces  occupied  strategic  points  on  the  Aru,  Kei,  and  Tenimber 
Islands  in  the  Arafura-Sea  north  of  Australia. 


Conference,  on,  the  Situation  with  the  Chief,  Naval  Staff 

In  a  Very  Restricted  Circle; 

I.    Upon  his  return  from  the  inspection  tour  in  France,  the  Chief, 
Naval  Staff  emphasizes  the  extremely  favorable  general  impression 
which  he  has  obtained  of  the  Navy's  defense  preparations  on  the' 
coasts  of  France.   Most  urgently  needed  is  a  reinforcement  of  patrol 
forces  for  the  protection  of  the  approach  and  exit  routes  of  submarines 
in  the  Bay  of  Biscay.   The  Commander  in  Chief,  Navy  is  submitting  the 
following  personal  report  to  the  Fuehrer: 

"In t he  period  from  3  to  6  Aug.  I  have  personally  examined  the  coastal 
defense  preparations  against  enemy  action  in  the  northern  and  western 
areas  of  France  (Le  Havre,  Baie  de  la  Seine,  Brest,  Lorient),  as  far 
as  they  concern  the  Navy  and  its  cooperation  with  the  Army  and  the 
Air  Force.   I  hereby  report  to  you,  my  Fuehrer,  that  I  have  gained  a 
very  favorable  impression  of  the  state  of  the  defenses,  especially 
the  submarine  bases.   Even  at  this  moment,  a  landing  would  mean  an 
almost  unbearable  risk  to  the  enemy. 

"Since,  at  this  stage,  the  enemy  can  hardly  achieve  his  primary  ob- 
jective, i.e.  elimination  of  the  submarine  bases,  he  is  trying  to 
deal  a  heavy  blow  to  our  submarine  operations  by  means  of  continuous 
air  attacks  against  the  submarines  in  the  coastal  waters  and  in  the 
Bay  of  Biscay  on  their  departure  and  approach  routes.   In  this  he  is 
supported  by  excellent  methods  of  radar  direction-finding.   So  far, 
several  submarines  have  been  lost  in  the  Bay  of  Biscay  and  numerous 
others  suffered  heavy  damage  which  put  them  out  of  commission  for 
several  months.   As  the  situation  is  constantly  becoming  more  diffi- 
cult, I  am  prompted  to  point  out  to  you  most  emphatically,  my 
Fuehrer,  the  serious  harm  that  may  be  caused  to  our  submarine  opera- 
tions if  the  present  menace  of  air  attacks  in  the  Bay  of  Biscay  is 
allowed  to  continue.   Today,  the  departure  and  approach  of  the  sub- 
marines via  the  Bay  of  Biscay  represents  the  most  difficult  part  of 
submarine  warfare. 


-53- 


CONFIDENTIAL 
6  Aug.  1942 

"In  view  of  the  decisive  importance  of  submarine  warfare,  measures  to 
remedy  the  situation  must  be  speeded  up.  The  air  forces  on  the  At- 
lantic coast  are  at  present  entirely  inadequate  for  operations  over 
the  Bay  of  Biscay.   Only  a  few  Ju  88' s  are  ready  to  be  sent  into 
action.   I,  therefore,  consider  it  urgently  necessary  to  increase  the 
air  forces  of  the  west  area  (Air  Commander,  Atlantic  Coast)  in  order 
to  obtain  adequate  protection  in  the  Bay  of  Biscay,  and  request  you 
to  order  an  increase  in  the  number  of  air  forces  operating  in  the  Bay 
of  Biscay  to  at  least  one  Ju  88  bomber  group  in  full  readiness,  as 
well  as  their  replacement  by  the  first  He  177  planes  coming  off  the 
assembly  line.   Only  in  such  a  measure  do  I  see  a  possibility  of  im- 
proving a  situation  which  has  become  unbearable,  and  of  avoiding 
further  heavy  losses." 

Details  of  the  inspection  tour  will  be  reported  to  the  usual  partici- 
pants at  the  situation  conference  on  7  Aug. 

II.   Report  on  the  situation  by  the  Chief,  Operations  Branch,  Naval 
Staff  Operations  Division: 

1.  The  Armed  Forces  High  Command  has  received  reports  on  large- 
scale  Russian  evacuation  transports  from  the  Tuapse  area  to  the  south 
by  sea.   The  Fuehrer  wishes  the  Navy  and  the  Air  Force  to  employ  all 
possible  means  of  attack.  Group  South  and  the  Admiral,  Black  Sea  are 
being  instructed  to  this  effect. 

2.  The  convoy  PQ  18  has  been  intercepted  by  submarine  U  "405" 
on  a  northerly  course  in  quadrant  AA  8949.   The  Admiral,  Arctic  Ocean 
has  sent  into  action  group  "Nebelkoenig",  in  order  to  have  as  many 
submarines  as  possible  in  the  area  through  which  the  convoy  is  mov- 
ing. Group  North  has  ordered  the  cruiser  force  to  be  ready  on  3 
hours  notice  and  the  KOELN  to  refuel  immediately  at  Narvik. 

Group  North  assumes  that  simultaneously  with  convoy  PQ  18,  a  QP  con- 
voy will  get  under  way.   Despite  the  annihilation  of  convoy  PQ  17, 
more  than  20  steamers  have  recently  been  located  in  the  harbors  of 
the  Arctic  Ocean.   It  is  therefore  quite  possible  that  a  convoy  will 
be  going  back.  The  Group  intends  to  send  the  naval  forces  under  the 
Commanding  Admiral,  Cruisers  against  the  QP  convoy  if  air  reconnais- 
sance furnishes  sufficient  evidence  that  the  operation  promises 
success.   It  is  planned  to  intercept  and  attack  the  convoy  in  the 
eastern  part  of  the  Arctic  Ocean  but  by  no  means  to  carry  the  attack 
to  an  area  where  the  2  convoys  may  meet.   Naval  forces  will  attack 
convoy  PQ  18  only  under  conditions  similar  to  those  stipulated  for 
attack  on  convoy  PQ  17. 

The  Chief,  Naval  Staff  approves  the  plan  in  principle.  The  plan  must 
be  reported  to  the  Fuehrer. 

3.  The  Russian  convoy,  whose  departure  from  Petropavlovsk  was 
reported  by  the  Japanese  Navy  on  26  Jul.,  presumably  reached  the 
Bering  Strait  on  1  Aug.,  according  to  dead  reckoning  by  the  Naval 
Staff  Operations  Division.   If  nothing  happens,  the  voyage  from  the 
Bering  Strait  will  take  15  to  18  days,  and  the  convoy  might  arrive  in 
the  Kara  Sea  around  15  Aug.  The  date  of  15  Aug.  is  also  approximately 
the  latest  on  which  an  eastbound  ship  can  depart  from  the  west.   The 
Naval  Staff  has  communicated  this  information  to  Group  North  and  has 
requested  the  latter  to  report  its  plans  at  an  early  date  and  to  sub- 
mit an  operations  order  for  the  operation  of  the  cruiser  SCHEER  in 
the  Kara  Sea. 

The  Chief,  Naval  Staff  agrees. 
-54- 


+ 


CONFIDENTIAL 
6  Aug.  1942 

4.  The  Naval  Representative  at  the  Armed  Forces  High  Command 
Operations  Staff  reports  from  his  official  trip  in  the  Black  Sea  area 
that  since  reinforcements  have  been  received  the  "Bluecher"  offensive 
is  being  reconsidered,  involving  2  Rumanian  divisions;  on  this  de- 
pends where  the  naval  landing  craft  should  be  concentrated.   3  ves- 
sels would  suffice  for  the  transport  assignment  on  the  Don.  The  de- 
cision is  up  to  Army  Group  A. 

The  Chief  of  Staff,  Naval  Staff  has  ordered  Commander  Junge  to  come 
to  Berlin  next  week  to  report  in  person  about  his  observations  con- 
cerning shipyard  conditions  in  Nikolayev  and  other  problems. 

5.  The  Chief  of  Staff,  Naval  Staff  reports  about  a  letter  from 
the  Duce  to  the  Fuehrer,  which  points  out  the  decisive  importance  of 
the  transport  problem  in  the  Mediterranean  and  reiterates  the  request 
for  fuel  oil  needed  by  Italian  naval  forces  to  maintain  patrol  and 
escort  operations  for  the  protection  of  supply  transports.   The  Chief 
of  Staff,  Armed  Forces  High  Command  was  in  Berlin  and,  in  compliance 
with  the  Fuehrer's  basic  policy,  recommended  a  loan  of  10,000  tons  of 
fuel  oil  to  be  granted  to  the  Italians  from  Navy  stocks,  although  he, 
too,  left  no  doubt  about  his  opinion  on  the  astonishingly  high  fuel 
oil  demands  of  the  Italian  Navy.   Considering  all  the  factors  in- 
volved, the  Chief  of  Staff,  Naval  Staff  has  approved  the  measure. 

The  Chief,  Naval  Staff  agrees. 


Special  Items: 

i 

I.  The  Air  Force  Operations  Staff  has  granted  the  fighters  re- 
quested for  the  return  of  the  LUETZOY/  and  has  issued  a  corresponding 
directive  to  the  5th  Air  Force  and  the  Air  Force  Group  Command, 
Central  Area,  v/ith  copy  to  the  Naval  Staff  Operations  Division. 

The  Naval  Staff  is  notifying  Group  North  to  this  effect. 

II.  The  Naval  Intelligence  Division,  Foreign  Navies  Branch  reports 
about  the  naval  stations  in  Great  Britain  and  Northern  Ireland  in 
News  Analysis  No.  38. 

III.  Radio  Intelligence  Report  No.  31/42  of  the  Naval  Staff  Communi- 
cations Division,  Communications  Intelligence  Branch  contains  a  com- 
pilation of  enemy  reports  from  the  radio  decoding  and  radio  intercept 
services  between  27  Jul.  and  2  Aug.  1942. 


Situation  6  Aug.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation; 

North  Atlantic ; 

According  to  an  intelligence  report,  the  number  of  men  em- 
barked in  England  during  the  first  half  of  1942  for  transport  to 
India  and  Ceylon  was  slightly  over  100,000.   By  October,  45,000  more 
men  for  India  are  to  follow.   It  is  presumed  that  a  large  convoy  of 

-55- 


CONFIDENTIAL 
6  Aug.  1942 

these  troops,  who  are  provided  v/ith  tropical  equipment,  will  depart 
from  ports  on  the  western  coast  of  England  in  the  early  days  of 
August . 

Indian  Ocean: 

Due  to  the  appearance  of  Japanese  submarines  in  the  Mozan- 
blque  channel,  instructions  for  vessels  sailing  alone  from  ports  in 
India  to  the  Cape  of  Good  Hope  now  direct  those  vessels  to  keep  far 
to  the  east  of  Madagascar.   But  this  will  not  bring  them  into  the 
operations  area  of  our  auxiliary  cruisers. 

2.   Own  Situation; 

The  third  prize  of  ship  "10",  the  steamer  MADRONO,  entered 
Yokohama  on  5  Aug.  Unfortunately,  the  ship  had  only  ballast  aboard. 

Report  on  enemy  situation  was  transmitted  via  Radiograms  1020  and 
1759. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

According  to  an  intelligence  report  from  Paris,  Anglophile 
circles  in  Prance  are  suddenly  showing  great  interest  in  Le  Treport 
and  its  surrounding  area. 

Air  reconnaissance  observed  normal  ship  movements  in  the  Channel. 

2.  Own  Situation: 

No  incidents  have  been  reported. 

The  following  operations  are  set  for  the  night  of  6  Aug. :  mine  opera- 
tion by  the  5th  PT  Boat  Flotilla,  torpedo  operation  by  the  2nd  and 
4th  PT  Boat  Flotillas,  transfer  of  the  3rd  Torpedo  Boat  Flotilla  with 
3  boats  to  St.  I'alo,  and  transfer  of  the  catapult  ship  SCHV/ABENLAND 
from  Boulogne  to  Dunkirk, 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea: 

Around  noon,  enemy  planes  unsuccessfully  attacked  vesnels 
of  the  Rhine  Flotilla  off  Walcheren.  -  In  the  afternoon,  enemy 
reconnaissance  planes  were  active  over  the  German  Bight  and  the 
northwestern  coast  of  Germany.  Four  bombs  were  dropped  on  and  in  the 
vicinity  of  the  Wangeroog  airfield.   Our  fighter  planes  made  no  con- 
tact with  the  enemy. 

Mine  operation  "Erasmus"  (cutter  float  barrage  SW  101)  is  to  be 
carried  out  during  the  night  of  6  Aug. 


-56- 


CONFIDENTIAL 
6  Aug.  1942 

2.   Norway,  Arctic  Ocean; 

Enemy  Situation: 

Lively  reconnaissance  activity  is  reported  over  the  northern 
part  of  the  North  Sea.   On  5  Aug.,   radio  intelligence  located  4 
British  vessels  in  the  southern  outlet  of  the  Gorlo  Strait  and  1 
vessel  in  the  Murmansk  area.   A  newly-laid  Russian  aerial  mine  was 
swept  in  the  eastern  outlet  of  the  Brei  Sound. 

At  0018,  a  submarine  reported  sighting  a  convoy  on  a  northerly 
course  in  quadrant  AA  8949.   At  0352,  she  lost  sight  of  the  convoy 
because  of  fog.   Thus,  convoy  PQ,  10  has  presumably  been  intercepted. 
Since  the  ice  boundary  has  receded  farther  than  77UN,  it  is  to  be 
expected  that  the.  convoy  will  haul  off  far  to  the  north,  passing 
close,  to  the  South  Cape  and  along  the  northern  part  of  Novaya  Zemlya. 
This  greatly  reduces  the  area  where  the  convoy  can  be  attacked  from 
the  air. 

Own  Situation: 

The  KOELN  and  the  STEINBRINCK  are  transferring  from  Trond- 

heim  to  Bogen  Bay.   On  5  Aug.,  enemy  planes  were  active  over  the 

western  coast.   The  6th  PT  Boat  Flotilla  is  transferring  with  5  . 
boats  from  Kirkenes  to  Tromsoe. 

The  Admiral,  Arctic  Ocean,  has  sent  the  submarine  group  "Nebelkoenig" 
against  convoy  PQ  18.   Submarines  U  "255"  and  U  "403"  have  been 
ordered  to  proceed  at  top  speed  to  quadrants  AB  58  and  AA  69,  re- 
spectively.  For  the  operations  plan  of  Group  North  see  Conference  on 
the  Situation  with  the  Chief,  Naval  Staff. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation: 

No  incidents  were  reported  from  the  area  of  the  Commanding 
Admiral,  Defenses,  Baltic  Sea. 

Transport  and  convoy  operations  to  and  from  Norway  and  Finland  are 
proceeding  according  to  plan. 

In  the  Gulf  of  Danzig,  submarine  U  "612"  sank  after  colliding  with 
submarine  U  "444".   One  man  was  killed. 

In  view  of  the  fact  that  Russian  naval  forces  are  not  expected  to 
break  out  of  the  Baltic  Sea  at  the  present  stage,  which  means  that  it 
will  not  be  necessary  to  mine  the  Sound,  the  Naval  Staff  agrees  to 
Group  North's  suggestion  that  operations  "Sevilla"  and  "Skarskhorn" 
be  dispensed  with  (see  War  Diary  3  Aug.).   The  mines  carried  by  the 
OTTER  may  be  used  to  replenish  the  reserves  of  the  Commander,  Mine 
Sweepers,  Baltic  Sea. 


-57- 


CONFIDENTIAL 
6  Aug.  1942 

On  the  night  of  5  Aug.,  mine  sweepers  M  "18"  and  IS  "30"  had  several 
unsuccessful  light  engagements  with  what  is  presumed  to  have  been  6 
Russian  motor  mine  sweepers  and  2  FUGAS-class  mine  sweepers  in  the 
Gulf  of  Pinland  between  Vigrund  and  Mansi  Bank.   On  the  same  spot,  a 
submerging  enemy  submarine  was  sighted  at  0345. 

Mine  operations  "Lachs  V"  and  "Lachs  VII"  have  been  executed  as 
planned,* 

In  view  of  the  persistent  menace  of  submarine  attacks,  Group  North  has 
assigned  ships  "7"  and  "47"  (decoy  ships)  from  the  area  of  the  Com- 
manding Admiral,  Defenses,  Baltic  Sea  to  the  Commander,  Mine  Sweepers, 
Baltic  Sea.  For  operation  "Duesseldorf",  they  will  be  replaced  by 
vessels  of  the  17th  Patrol  Boat  Flotilla. 

In  order  to  reinforce  the  escort  service  in  view  of  the  persistent 
danger  of  submarine  attacks,  Group  North  requests  a  temporary  alloca- 
tion of  further  gun  carriers  to  the  27th  Landing  Flotilla,  since  it 
is  no  longer  possible  to  increase  the  force  of  the  Commander,  Mine 
Sweepers,  Baltic  Sea  by  withdrawing  vessels  from  other  command  areas. 

The  request  is*  under  consideration. 


e 


V.   Submarine  Warfare 

1.  '  Enemy  Situation: 

Planes  reported  sighting   submarines  175  miles  west  of  the 
Gironde  estuary  and  200  miles  southwest  of  Brest.   A  plane  reported 
an  unsuccessful  depth  charge  attack  on  another  submarine  250  miles 
north  of  the  Shetland  Islands. 

2.  Own  Situation; 

For  the  Naval  Staff's  communication  to  the  Commanding  Ad- 
miral, Submarines  about  the  intelligence  report  on  the  departure  of  a 
large  American  troop  transport  (War  Diary  3  Aug.)  see  Telegram  0046. 

After  having  disappeared  in  the  fog  at  0351,  convoy  PQ  18  was  not 
located  a  second  time  during  the  day.  Group  "Nebelkoenig"  has  been 
ordered  to  form  a  patrol  line  extending  from  quadrants  AA  6819  to 
AA  9381  at  0000  on  7  Aug.  The  convoy  should  reach  this  line  shortly 
after  midnight  if  it  proceeds  at  8  miles  per  hour. 

Altogether,  13  boats  are  operating  against  the  convoy  in  quadrant  A J. 
8  boat3  made  temporary  contact  with  the  convoy  in  the  course  of  the  day* 

No  successes  have  been  reported  from  any  of  the  operations  areas. 

Further  reports  are  contained  in  the  Supplement  to  the  Submarine  Sit- 
uation in  War  Diary,  Part  B,  Vol.  IV. 

3.  Special  Items; 

The  permission  to  attack  unescorted  vessels  sailing  alone 
on  route  "Anton",  which  had  been  granted  to  the  submarines  in  the  past, 
has  now  to  be  cancelled  beginning  10  Aug.  for  the  area  north  of  20"  N 
and  beginning  16  Aug.  for  the  area  south  of  20°N,  due  to  the 


-58- 


* 


CONFIDENTIAL 
6  Aug.  1942 

resumption  of  blockade-runner  traffic. 

The  Commanding  Admiral,  Submarines  is  being  directed  to  this  effect 
via  telegram.   See  1/Skl  I  u  1525/42  Gkdos.  Chefs.  In  War  Diary- 
Part  C,  Vol.  IV. 


VI.   Aerial  Warfare 

1..   British  Isles  and  Vicinity; 

Our  planes  attacked  In  daylight  operations  Norwich,  Boston, 
and  Margate,  as  well  as  Trurc  and  Bodmin  (Cornwall).   On  the  night  of 
6  Aug.,  a  few  planes  raided  Cambridge  and  Edinburgh.   Bombs  were 
dropped  on  2  steamers  in  a  convoy  off  Start  Point  but  fighter  defense 
prevented  observation  of  effects. 

During  the  day,  2  enemy  planes  penetrated  into  the  Reich  area  with- 
out dropping  bombs.   During  the  night,  74  flights  were  observed  over 
the  industrial  area  of  western  Germany.  They  did  not  concentrate  on 
any  one  place.   Our  night-fighters  shot  down  5  planes. 

2.  Mediterranean  Theater: 

Reconnaissance  over  the  area  extending  up  to  3  W  In  search 
of  the  EAGLE  group  failed  to  yield  any  results. 

Planes  protecting  supply  transports  and  convoys  took  off  from  Crete. 
In  Africa,  planes  were  sent  into  action  against  airfields  arid  tank 
concentrations . 

Reconnaissance  flights  were  carried  out  over  the  eastern  Mediterranean 
and  the  Suez  Canal.   For  results  see  Enemy  Situation,  Mediterranean. 

3.  Eastern  Front? 

Patrol  vessels  and  1  mine-sweeper  were  successfully  attacked 
in  the  eastern  part  of  the  Gulf  of  Finland.   In  the  Arctic  Ocean  area, 
our  planes  raided  1  guerilla  camp  near  Songelsk  and  1  oentonment  near 
Eina  Bay  with  observed  effect.   Reconnaissance  over  the  Motovski  Bay 
up  to  the  Rybachi  Peninsula  failed  to  yield  any  results. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation,  Mediterranean: 

On  the  night  of  5  Aug.,  the  LIVERPOOL  departed  with  3  de- 
stroyers from  Gibraltar,  presumably  in  westerly  direction.   One 
cruiser  of  the  CAIRO-class  was  at  sea  together  with  several  light 
vessels  east  of  Gibraltar  throughout  the  day  for  maneuvers.   Efforts 
to  locate  the  EAGLE  group  in  the  western  Mediterranean  failed.   Nor 
have  any  indications  been  received  about  transfer  of  planes  to  Malta, 

Submarines  were  sighted  south  of  Naples  and  southwest  of  Gavdho.s. 


-59- 


CONFIDENTIAL 
C  Aug.  1942 

No  ship  rnovencnts  were  observed  in  the  eastern  Mediterranean.   Photo- 
graphic reconnaissance  in  that  area  showed  no  noteworthy  changes  in  the 
number  or  type  of  vessels  in  the  harbors.   On  5  Aug.,  air  reconnaissance 
located  1?  steamers,  1  tanker,  1  hosnital  ship,  find  1  southbound  sub- 
marine in  the  Suez  Canal. 


o 


Own  Situation,  Mediterranean : 


During  the  nighty  of  5  Aug.,  enemy  planes  raided  Bardia.   8 
Italian  submarines  were  at  sea  in  the  western  lied  it  err  an  can. 

3.  Transport  of  Supplies  to  North  Afr.ica: 

On  5  Aug.,  the  motor  ships  SiXTPJSRU  and  BIXIO  arrived  in 
Benghazi,  the  AITCARA  in  Tobruk.   Otherwise,  the  transport  situation  is 
in  accordance  with  plans.    In  Tobruk,  1,113  tons  were  unloaded  on  4 
Aug.  and  1,130  tons  on.  5  Aug.    In  Marsa  Matruh,  212  tons  were  un- 
loaded on  5  Aug. 

4.  Area  Naval  Group  South; 

Aegean  Sea; 

On  4  Aug.,  an  enemy  submarine  sank  1  auxiliary  sailing  vessel 
off  the  eastern  coast  of  the  Peloponnesos .   The  Italian  Navy  reports 
sighting  a  submarine  south  of  the  Doro  Channel  on  6  Aug.   Transport 
operations  are  proceeding  as  planned.   The  steamer  UACKTFSLS  has  de- 
parted under  escort  with  several  Italian  steamers  from  Suda  to  Piraeus, 

Black  Sea: 

Enemy  Situation; 

An  intelligence  report  stated  that  on  2  Aug.  Admiral  Kuznetsov 
inspected  the  Black  Sea  Flotilla  in  Novorossisk  consisting  of  1  battle- 
ship, 1  aircraft  carrier,  30  submarines,  3  cruisers,  6  destroyers,  and 

10  torpedo  boats.   Some  of  the  vessels  are  said  to  have  been  brought  up 
from  Tuapse  and  Gelendzhik. 

The  Armed  Forces  High  Command  has  received  reports  on  large-scale  evac- 
uation transports  from  the  Tuapse  area  to  the  south. 

On  6  Aug.,  air  reconnaissance  observed  few  convoy  movements  in  the  Black 
Sea  along  the  northeastern  coast. 

According  to  an  intelligence  report  from  Sofia  of  mid-July,  Fort 
Uritski  (Aleksandrovsk)  on  the  Mangyshlak  Peninsula  on  the  northeast 
coast  of  the  Caspian  Sea  is  now  a  base  for  the  Caspian  Sea  Flotilla, 
with  large  stocks  of  fuel,  docks,  and  barracks. 

On  5  Aug.,  photographic  reconnaissance  located  3  gunboats,  3  submarines, 

11  tankers,  15  steamers,  4  large  lighters,  and  numerous  small  vessels 
riding  at  anchor  in  Baku. 

Own  Situation; 

Concerning  the  sinking  of  a  Russian  vessel  by  an  Italian  sub- 
marine chaser  on  the  night  of  2  Aug.,  the  Air  Commander,  South  reports 
in  accord  with  the  Italian  subchaser  flotilla  command  that,  after 
checking  all  the  data,  he  now  shares  the  belief  that  2  separate 


•  GO- 


CQ1IFIDEIITIAL 
6  Aug.  1942 

enemy  forces  were  involved  on  the  night  of  the  operation  and  that  the 
Italian  submarine  chasers  sank  the  cruiser  KRASFY  KRIM. 

This  opinion  is  based  on  findings  of  the  radio  intelli- 
gence service  (see  V.'ar  Diary  3  Aug.). 

The  llaval  Shore  Command,  Ukraine  started  the  transport  of  personnel  for 
Yeisk  on  5  Aug. 

On  the  night  of  4  Aug.,  our  artillery  fired  on  1  enemy  PT  boat  off 
Ivanbaba  and  several  southbound  vessels  in  the  Kerch  Strait.   One  of 
our  boats  had  an  engagement  with  an  enemy  vessel.   Three  of  our  men 
were  wounded.   2  Russian  mines  which  were  adrift  in  the  area  off 
Mariupol  have  been  detonated. 

I.line-sweeping  operations  are  proceeding  according  to  plan.   The  trans- 
port of  supplies  from  Taganrog  to  Azov  started  on  4  Au^;. 

Special  Items: 

(1)  The  Gorman  llaval  Attache  in  Rome  reports  on  5  Aug.  that  the 
Italian  llavy  has  agreed  to  the  transfer  to  the  Caspian  Sea  of  several 
small  submarines,  which  are  at  ^resent  operating  in  the  Black  Sea.  In 
a  conference  with  the  Commanding  Admiral,  Croup  South,  Admiral 
Riccardi  has  finally  agreed  to  transfer  immediately  2  additional  sub- 
marine chasers  from  Italy  to  the  Black  Sea  area.   The  Italian  Ad- 
miralty leaves  it  up  to  Group  South  to  decide  how  many  surface  vessels 
and  submarines  are  to  be  transferred  from  the  31ack  Sea  to  the 
Caspian  Sea.   The  Italian  Admiralty  expects  the  number  to  comprise 

some  5  submarines  and  4  submarine  chasers. 

< 

For  the  corresponding  directive  of  the  llaval  Staff  to  Group  South  and 
the  Admiral,  Black  Sea  see  Telegram  1919. 

(2)  For  Group  South' s  directive  to  the  Admiral,  Black  Sea  concerning 
the  resumption  of  supply  transports  to  Sevastopol,  with  copies  to  the 
Kaval  Staff  and  the  Navy  Liaison  Officer  at  the  Army  High  Command,  see 
Telegram  2020. 


VIII.  Situation  East  Asia 

llo  special  reports  have  been  received. 


IX.   Army  Situation 

1.    Russian  Front: 

Army  Group  A: 

Rumanian  forces  are  advancing  toward  Yeisk.   2  important 
railway  bridges  fell  into  our  hands  undamaged.   A  similar  success  was 
achieved  when  our  troops  captured  2  other  railway  bridges  on  their  ad- 
vance to- Ilovokursunskaya,  Berenskaya,  and  Aleksandrole vskaya.   Strong 
enemy  forces  are  holding  the  south  shore  of  the  Kuban  River  between 
Ivropotkin  and  Timoshevskaya.   In  their  advance  from  Armavir  our  troops 
have  reached  Kurgannaya.   The  advance  toward  Labinskaya  has  begun. 
P-et-rov-ek  is  free  from --enemy -troops.— 

-61- 


CONFIDENTIAL 
6   Aug.    1942 

Arr.iy  Group  D; 

South  of  Remontnoe,  our  forces  gained  ground  towards  the 
south  and  southeast.   Enemy  attacks  'near  Kalach  and  Kletskaya  were 
repulsed.   The  troops  which  crossed  the  Don  on  5  Aug.  have  been  an- 
nihilated.  Near  Korotoyak,  strong  enemy  forces  have  pushed  across 
the  Don.   Hungarian  troops  are  mopping  them  up.   Repeated  enemy  at- 
tacks in  the  vicinity  of  Livny  were  repulsed. 

Central  Army  Group : 

Armored  units  brought  to  the  Rzhev  sector  succeeded  in 
sealing  off  the  point  of  penetration  near  Zubtsov.   The  penetration 
was  extended  up  to  the  Gzhatsk  River. 

Northern  Army  Group: 

Combat  activity  is  reported  near  Staraya  Russa,  near  Soltsy, 
and  in  the  area  before  Leningrad. 

2.  Finnish  Front; 

No  noteworthy  combat  operations  are  reported. 

3.  North  Africa; 

Artillery  and  reconnaissance  activity  as  usual.   Only  small 
numbers  of  enemy  planes  were  in  action. 


-62- 


CONFIDENTIAL 
7  Aug.  1942 

Items  of  Political  Importance 

India; 

Gandhi  stated  in  a  press  conference  that  he  is  not  going  to  send  the 
Congress  resolution  to  the  Viceroy  as  an  ultimatum,  but  rather  as  a 
basis  for  further  negotiations.   He  refused  to  assure  the  representa- 
tives of  the  press  that  he  no  longer  wants  to  negotiate  with  Japan 
and  remarked  that,  under  certain  circumstances,  such  negotiations 
might  be  in  the  interest  of  the  Allies. 

Portugal; 

Prime  Minister  Salazar  gave  the  Temps  a  widely  publicized  interview 
on  the  dynamic  forces  of  the  present  war.  The  text  is  reprinted  in 
the  Political  Review  No.  183,  Paragraph  5. 

In  view  of  the  weakening  Russian  resistance,  increasing  anxiety  is 
voiced  both  in  Portugal  and  in  Spain  about  the  possibility  that  Great 
Britain  may  take  steps  to  seize  not  only  French  but  Portuguese  and 
Spanish  colonies  as  well. 

Great  Britain; 

The  Secretary  of  State  for  War  has  announced  the  formation  of  a 
Palestine  regiment  consisting  of  Jewish  and  Arab  companies. 

Japan ; 

In  connection  with  the  Indian  problem,  the  spokesman  of  the  Japanese 
Ministry  of  Information  declared  that,  regardless  of  whether  India 
will  or  will  not  become  independent,  Japan  can  never  allow  India  to 
be  used  by  the  Allied  forces  for  military  purposes. 

The  Army  spokesman  confirmed  this  statement,  pointing  out  that,  in 
case  of  a  further  expansion  of  anti-Japanese  military  activities, 
Japan  will  take  decisive  military  steps  against  India.  A  compromise 
with  Chungking  is  not  possible.   Only  a  complete  extermination  of  the 
Chiang  Kai-shek  regime  will  lead  to  a  lasting  peace  in  Eastern  Asia. 

Russia; 

The  official  German  news  agency  (DNB)  repeats  rumors  from  Lisbon  ac- 
cording to  which  Churchill's  alleged  trip  to  Moscow  was  occasioned  by 
Stalin's  threat  to  enter  into  peace  negotiations  unless  the  Second 
Front  is  established. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  In  his  situation  report,  the  Chief  of  Operations  Branch,  Naval 
Staff  Operations  Division  states  that,  so  far,  the  Turks  have  not  ap- 
proached us  in  the  question  of  the  mine  field  off  the  Dardanelles. 

II.  The  Chief  of  the  Quartermaster  Division,  Naval  Staff  reports  that 
torpedo  boat  T  "24"  cannot  be  commissioned  in  October  as  scheduled 
because  no  officers  are  available.  The  crew  from  the  destroyer  LODY 
has  already  been  assigned  elsewhere.  The  Commander  in  Chief,  Navy  is; 
issuing  orders  to  the  effect  that  the  vessel,  including  officers,  mus^ 
under  all ...  circums  tances  be  Jcaady..J!ar— .afirvlne  .nn  15-Qat^— 19-42^. 


+63- 


CONFIDENTIAL 


7  Aug.  1942 


III.  The  Chief  of  the  Naval  Staff  Quartermaster  Division  reports  on 
the  following: 

1.  Organization  of  the  Commanding  Officer,  Supply  and  Trans- 
ports, Black  Sea  who  will  have  to  face  tasks  of  extreme  importance 
during  the  next  6  weeks. 

2.  The  Fuehrer  order  concerning  the  release  of  shipyard 
workers.   The  minister  for  Armaments  and  War  Production  called  the 
attention  of  the  Chief  of  Staff,  Armed  Forces  High  Command  to  the 
effect  which  execution  of  this  order  will  have  on  the  other  orders 
given  him  by  the  Fuehrer,  and  said  that  he  night  report  these  ob- 
jections to  the  Fuehrer.   Since  Minister  Sneer  has  presumably  left 
for  the  Fuehrer  Headquarters,  the  Chief,  Naval  Staff  Quartermaster 
Division  will  do  likewise  without  further  delay,  in  order  to  make 
every  effort  to  see  that  the  Fuehrer  order,  which  he  had  brought 
about,  Is  actually  carried  out. 

3.  The  Italians  have  promised  to  begin  with,  to  furnish 
personnel  for  2  smoke  detachments  (Gdynia,  Trondheim).   The  arrival 
of  the  personnel  is  expected  around  mid-August.   So  far,  smoke- 
screening  preparations  are  completed  in  Kiel,  Eckernfoerde,  and 
(by  the  Air  Force)  the  Aasen  Fjord. 

Smoke  equipment  is  being  provided  for  Gdynia,  the  Bo gen  Bay,  and  the 
Alta  Fjord. 

It  is  hoped  likewise  to  equip  V/ilhelmshaven,  Emden,  3runsbuettel, 
Wesermuende,  Pillau,  l.lemel,  Swinemuende,  Stralsund,  and  Rudolstadt; 
in  Norway:  Trondheim  (city  and  harbor),  Bergen,  Horten;  In  the  west 
area:  Rotterdam,  Amsterdam,  Ijmuiden,  Bordeaux,  Lorient,  Le  Havre, 
Cherbourg,  Brest,  St.  Nazaire,  La  Pallice,  and  Boulogne;  in  the 
Aegean  Sea  area:  Salamis. 

IV.  The  Chief,  Underwater  Obstacles  Branch,  Naval  Ordnance  Division 
reports  that  British  aerial  mines  are  likely  to  be  equipped  with 
acoustic  firing  devices. 

According  to  a  report  by  the  Mine  Laying  Experimental  Command,  the 
mines  in  question  are  British  aerial  mines  which  had  been  salvaged 
in  the  Hohwacht  Bay  and  which  show  the  same  type  of  fastening  de- 
vices as  those  used  for  the  measuring  equipment  in  the  German  LITB 
Gruen  mines.   It  is  very  probable  that  the  Germs n  Fab  III  has  been 
copied.   It  is  therefore  to  be  expected  that,  in  addition  to  purely 
acoustic  mines,  there  will  also  appear  acoustic  mines  combined  with 
the  British  induction  firing  devices.   Defense  measures  are  being 
prepared. 

The  Naval  Staff  immediately  passed  on  this  information  to  Groups  V/est 
and  "Torth,  the  Commanding  Admiral,  Defenses,  North,  the  Commanding 
Admiral,  Defenses,  Baltic  Sea,  and  the  Commanding  Admiral,  Defenses, 
West. 

V.  The  Chief  of  the  Submarine  Division  of  the  Naval  Staff  has  been 
directed  to  accept  with  thanks  the  Italian  offer  to  furnish  500  ship- 
yard workers  for  submarine  repairs  in  Bordeaux. 

VI.  The  Commander  in  Chief,  Navy  discusses  certain  aspects  of  his 
inspection  tour  in  France  and  issues  orders  pertaining  to  them. 


-64- 


CONFIDENTIAL 
7  Aug.  1942 

For  copy  of  the  conferences  and.  Inspections  held  In  Prance,  as  well 
as  related  requests  and  measures,  3ee  l/Skl  I  b  19359/42  Gkdos.  in 
File  "Besichtigungsreise  Ob.  d.M.  im  nord-und  v/estfranzoes.  Raum" 
(Inspection  tour  of  Commander  in  Chief,  Navy  In  northern  and  western 
areas  of  France),  appended  to  War  Diary,  Part  G,  Vol.  II  b. 

The  Chiefs  of  the  Naval  Staff  Quartermaster  Division;  the  Communica- 
tions Division;  the  Underwater  Obstacles  Branch,  Naval  Ordnance  Di- 
vision; and  the  Naval  Ordnance  Division  are  directed  by  the  Naval 
Staff  to  take  the  necessary  measures. 

VII.  The  Commander  in  Chief,  Navy  emphasizes  that  the  data  on  the 
calibers  of  guns  installed  on  the  new  Japanese  battleships,  which 
the  Japanese  have  communicated  to  us  as  strictly  confidential,  must 
be  kept  absolutely  secret.   The  Information  was  meant  only  for  the 
Fuehrer,  who,  as  recorded  on  31  Jul.,  made  certain  decisions  on  the 
basis  thereof  with  regard  to  German  battleship  construction. 

VIII.  The  Chief,  Naval  Construction  Division  reports  on  his  negotia- 
tions with  the  Reich  Commissioner  of  Maritime  Shipping  concerning  the 
possibility  of  using  Dutch  shipyards  for  the  "Hansa"  construction 
program.   The  Reich  Commissioner  has  agreed  under  protest  to  the  out- 
come of  the  negotiations  whereby  some  of  these  shipyard  facilities 
have  been  left  at  the  disposal  of  the  Navy. 

The  Commander  in  Chief,  Navy  agrees  and  points  out  that  the  Navy 
should  show  genuine  interest  in  the  realization  of  the  "Hansa"  con- 
struction program. 

The  Chief,  Naval  Construction  Division  reports  further  on  his  nego- 
tiations with  the  Reich  Commissioner  for  Maritime  Shipping  on  the 
question  of  shipbuilding  in  Nikolayev.   The  Chief,  Naval  Construction 
Division  considers  it  advisable  that  the  Reich  Commissioner  of  Mari- 
time Shipping,  using  the  facilities  allocated  to  him,  be  the  only  one 
concerned  with  construction  of  merchant  ships  in  Nikolayev.   The 
differing  view  of  Naval  Group  South  cannot  be  approved.   When  tonnage 
is  required  for  transporting  Caucasian  oil,  the  tanker  situation  in 
the  Black  Sea  will  become  extremely  difficult.   The  Navy  should  not 
be  burdened  with  this  responsibility.   The  Chief,  Naval  Construction 
Division  also  recommends  that  the  wishes  of  the  Reich  Commissioner  of 
Maritime  Shipping  be  complied  with  by  placing  at  his  disposal  In  the 
Black  Sea  area  6  port  commanders  with  ample  experience  In  transport 
service. 

The  Chief,  Naval  Staff  Quartermaster  Division  objects  to  this  measure, 
which  would  mean  that  6  urgently  needed  naval  officers  would  be  re- 
leased for  duty  as  harbor  inspectors,  while  other  officers  would  have 
to  replace  them  as  port  commanders. 

The  Commander  in  Chief;  Navy  agrees  with  the  Chief,  Naval  Staff 
Quartermaster  Division  in  this  point.   As  for  the  question  of  ship 
construction,  a  separate  decision  will  be  issued  after  further  ex- 
amination. 

IX.  Another  point  of  friction  with  the  Reich  Commissioner  of  Mari- 
time Shipping  is  the  question  of  turning  over  to  him  merchant  ship 
tonnage  which  is  now  in  the  hands  of  the  Navy.   The  Minister  for 
Armaments  and  War  Production  interpreted  the  respective  Fuehrer  dir- 
ective (see  War  Diary  28  and  29  Jul.)  as  meaning  that  300,000  GRT  are 
to  be  released,  instead  of  the  10$,  or  250,000  GRT,  ordered  by  the 
Fuehrer,  and  that  the  Navy  is  forbidden  to  use  merchant  ships  as 


-65- 


CONFIDENTIAL 
7  Aug.  1942 

hospitals  or  barracks.   (See  Y/ar  Diary,  8  Jul.)  To  the  objections 
raised  by  the  Chief,  Quartermaster*'  Division,  Naval  Staff,  the 
Minister  merely  replied  that  he  expects  the  Fuehrer  directive  to  be 
complied  with.   Vice-Admiral  Krancke  will  explain  the  matter  to  the 
Fuehrer  personally. 

The  difficulties  which  the  Naval  Staff  feared  would 
arise  unless  cooperation  between  the  Navy  and  the 
Reich  Commissioner  of  Maritime  Shipping  were  fully 
ensured,  are  now  beginning  to  show  up. 

In  a  Very  Restricted  Circlet 

X.  The  Naval  Representative  on  the  Armed  Forces  High  Command 
Operations  Staff  reports  that  the  Chief  of  the  Operations  Staff  of 
the  Arined  Forces  High  Command  is  in  complete  agreement  with  the 
Naval  Staff's  memorandum  concerning  Crete  (see  V/ar  Diary  28  Jul.); 
however  he  does  not  believe  that  presentation  of  the  memorandum  to 
the  Fuehrer  will  have  the  desired  effect,  since  the  Fuehrer  has 
made  it  a  basic  point  of  his  policy  to  consider  the  Mediterranean 
as  part  of  the  Italian  lebensraum,  in  which  Germany  must  have  no 
aspirations  whatsoever.   This  area,  says  the  Fuehrer,  which,  for 
reasons  of  climate  if  nothing  else,  is  unsuited  for  Germanic  peoples, 
has  repeatedly  brought  disaster  to  the  German  Reich  in  the  course 

of  history. 

The  Naval  Staff  believes  that  eventually  the  arguments  laid  down  in 
the  memorandum  will  be  proved  correct  by  the  dynamics  of  the  mili- 
tary and  political  developments.   It  is  therefore  necessary  to 
suggest  these  ideas  to  the  Fuehrer  now,  regardless  of  his  present 
attitude.   In  any  case  the  memorandum  was  not  intended  to  make  him 
change  his  attitude,  but  was  only  meant  to  clarify  the  issues  in- 
volved.  The  Chief,  Naval  Staff  will  take  the  opportunity  to  call 
the  Fuehrer's  attention  to  this  subject  briefly  at  the  next  con- 
ference. 

XI.  No  decision  has  aS  yet  been  made  concerning  operation  "Bluecher", 
As  matters  stand  now,  Army  Group  A  again  seems  to  emphasize  the 
importance  of  maintaining  the  transport  of  supplies  on  the  Don, 
while  giving  up  the  idea  of  launching  an  offensive  across  the  Kerch 
Strait. 

The  first  operation  of  the  1st  PT  Boat  Flotilla  off  Tuapse  has  been 
reported  to  the  Armed  Forces  High  Command.   The  approach  route  from 
the  Crimean  bases  to  an  operations  area  off  the  Caucasian  coast  is 
too  long  for  the  small  Italian  submarines  and  submarine  chasers. 

XII.  The  recent  mine-laying  operations  launched  by  the  enemy  off  the 
Dutch  coast  (mines  have  been  located  off  Egmond-aen-Zee )  have 
promoted  Group  North  to  give  up  the  plan  of  protecting  the  coast  by 
laying  our  own  mine  fields  as  desired  by  the  Army  (sec  V/ar  Diary  1 
Aug.).   Group  North  has  notified  Army  Group  D  to  this  effect  and 
recommended  that  the  beach  be  extensively  mined  with  contact  mines. 

XIII.  The  report  of  the  Chief  of  Operations  Branch,  Naval  Staff  on 
Group  North's  plans  concerning  the  laying  of  mines  in  the  sea  area 
of  Novaya  Zemlya  is  recorded  in  the  V/ar  Diary  of  30  Jul.   Investi- 
gation has  shov/n  that  the  KOELN's  radius  of  action  is  sufficient 
for  her  participation  in  the  operation. 


-66- 


CONFIDENTIAL 
7  Aug.  1942 

The  Chief,  Naval  Staff  agrees  and  points  out  that  the  most  dangerous 
of  these  operations  should  be  carried  out  first.   The  Naval  Staff 
will  inform  Group  North. 

XIV.  With  reference  to  the  Fuehrer's  demand  for  an  investigation  into 
the  possibilities  of  using  mines  to  attack  PQ,  convoys  during  the 
winter  (see  War  Diary  17  Jul.),  the  Naval  Staff  informs  Group  North 
of  the  Fuehrer  directive  concerning  preparations  by  the  Commanding 
General  of  tho  20th  Army  in  cooperation  with  the  5th  Air  Force  for  an 
attack  aimed  at  seizing  the  Murmansk  Railway  near  Kandalaksha.  Under 
favorable  circumstances,  this  attack,  which  has  been  given  the  code 
name  "Lachsfang",  is  to  be  carried  out  before  winter  sets  in. 

The  Fuehrer  considers  that  one  of  the  essential  prerequisites  for 
succeeding  in  this  operation  and  exploiting  the  results  is  to  pre- 
vent the  Russians  from  reinforcing  their  troops  in  Murmansk,  in  other 
words  to  cut  off  sea  communications  to  Murmansk  this  winter. 

Group  North  is  therefore  directed  to  investigate  how  this  can  be 
accomplished  by  extensive  mine-laying.   Suggestions  are  to  be  sub- 
mitted as  soon  as  possible. 

Only  a  very  restricted  cirale  is  to  be  informed  of  operation 
"Lachsfang." 

XV.  According  to  a  directive  of  the  Chief,  Naval  Staff  (see  War 
Diary  6  Aug.),  the  plan  to  employ  naval  forces  against  the  QP  convoy 
as  soon  as  reconnaissance  reports  have  come  In  is  being  communicated 
to  the  Armed  Forces  High  Command,  Operations  Staff,  with  copies  to 
the  Fuehrer's  Naval  Aide  and  Group  North.   Naval  forces  other  than 
submarines  can  be  used  only  if  the  convoy  passes  within  the  radius  of 
action  of  the  destroyers;  cruisers  require  the  support  of  a  battle- 
ship, and  a  battleship  requires  destroyers  as  protection.   The  opera- 
tion against  the  westbound  convoy  is  planned  so  that  our  forces  will 
not  encounter  the  eastbound  convoy,  unless  definite  information  on  the 
expected  heavy  escort  is  available  and  our  forces  are  not  imperiled 
by  aircraft  carriers. 

For  copy  see  Telegram  l/skl  I  a  1531/42  Gkdos.   Chefs,  in  File 
"Eispalast". 

The  Chief,  Naval  Staff  agrees. 


t&egial  Items; 

I.    On  20  Jul.,  the  Military  Attache  In  Santiago,  Chile  sent  the 
fallowing  report: 

"The  U.S.  Military  Attache  made  the  following  statements  to  a.  Chilean 
general  on  the  over-all  plans  of  the  U.S.A.  for  the  further  conduct 
of  the  war:   a  large  air  force  is  being  assembled  in  U.S.A.,  primarily 
for  an  offensive  against  Germany  and  Europe.   Preparations  will  take 
another  §  to  6  months.   The  offensive  will  mainly  be  launched  from 
th©  gritish  Isles  which  are  being  prepared  for  this  purpose  (occupa- 
tion of  Ireland  prior  to  this  action  might  be  necessary).  A  real  mass 
attack  will  be  employed  in  the  operation  without  regard  for  losses. 
The  first  attaok  will  be  directed  against  big  cities  (as  thoroughly 
as  possible)  and  against  Industrial  centers.   Only  after  that  will 


-67- 


CONFIDENTIAL 
7  Aug.  1942 

major  Amy  and  Navy  operations  against  the  Continent  be  launched. 
Earlier  similar  operations  are  only  of  nuisance  and  training  value. 
It  makes  no  difference  whether  Russia  has  lost  the  Caucasus  and  other 
areas  by  then  or  not.   The  essential  thing  is  to  hold  the  Russian 
front  as  such,  so  that  it  can  once  more  be  used  to  tie  up  German 
forces  at  a  later  date.   Furthermore,  preparations  are  in  progress  for 
an  offensive  in  Central  Africa  and  the  Nile  valley  in  the  direction  of 
the  Mediterranean  and  beyond,  as  well  as  for  an  offensive  from 
Australia  against  the  Japanese-occupied  islands.   Finally,  an  air 
offensive  will  be  launched  from  Russian  territories  in  the  East 
against  Japan.   Preparation  of  air  bases  (particularly  150  to  200  km 
northwest  of  Vladivostok)  has  been  under  way  for  a  long  time;  due  to 
efficient  camouflage,  the  Japanese  have  apparently  failed  to  realize 
its  extent.   Part  of  the  materiel  has  already  arrived  there.   China 
plays  the  same  role  with  respect  to  Japan  as  Russia  with  respect  to 
Germany.   The  danger  of  a  post-war  spread  of  communism  (which  is  not 
too  important  for  America)  must  at  this  juncture  be  put  up  with." 

II.  An  extract  from  the  study  of  the  Control  Inspectorate  in  Africa, 
dated  28  May,  on  French  defenses  in  case  of  an  Anglo-American  offen- 
sive against  Morocco  is  in  War  Diary,  Part  C,  Vol.  XVI. 

III.  The  Naval  Communications  Division,  Intelligence  Branch,  acting 
in  agreement  with  the  Naval  Staff,  Operations  Division,  has  issued 
designations  and  abbreviations  for  British  ships.  For  copy  see 
l/Skl  27018/42  geh.  in  War  Diary,  Part  B,  Vol.  V. 

IV.  The  distribution  of  British  naval  forces  as  of  1  Aug.  1942,  ac- 
cording to  the  findings  of  the  Naval  Communications  Division,  In- 
telligence Branch,  can  merely  be  taken  as  an  indication  of  the  actual 
situation,  since  for  some  time  in  the  past  only  a  very  limited  amount 
of  information  could  be  obtained  about  the  movements  of  British  naval 
forces.  For  copy  see  l/skl  26793/42  geh.  In  War  Diary,  Secret  Radio 
Intelligence  Reports. 


Situation  7  Auk.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

According  to  an  intelligence  report,  the  steamer  QUEEN 
ELIZABETH  was  located  on  3  Aug.  on  a  southerly  course  at  18°E<,34°S. 
On  27  Jul.,  the  auxiliary  cruiser  ALCANTARA,  after  escorting  a 
steamer  as  far  as  the  latitude  of  Durban,  began  her  return  voyage  to 
Cape  Town. 

2.  Own  Situation: 

The  German  Naval  Command,  Italy  reports  that  on  6  Aug.  at 
noon  the  Italian  repatriation  ships  ARCOLA  and  TAIGETE  were  proceed- 
ing at  a  speed  of  8.5  knots  on  a  course  of  92°  when  located  at  6° 
43'  N,  34°  82'  W. 

Via  Radiogram  0108,  ship  "10"  was  notified  of  the  arrival  of  the 
MADRONO  in  Yokohama  on  5  Aug. 


-68- 


COHFIDEHTIAL 
7  Aug.  1942 

Radiogram  2017  informs  the  CHARLOTTE  SCHLIEMAM  that  she  can  probably 
proceed  to  Japan  at  the  end  of  August. 

Via  Radiogram  2044,  all  vessels  in  foreign  waters  were  notified  that 
the  permission  for  our  submarines  to  attack  unescorted  vessels  sail- 
ing alone  on  route  "Anton"  has  been  revoked  for  the  area  north  of  20° 
N  beginning  10  Aug.  and  for  the  area  south  of  20°N  beginning  16  Aug. 
This  puts  the  original  order  for  route  "Anton"  back  into  effect,  ex- 
cept for  £he  fact  that  the  operations  zone  for  the  submarines  along 
the  Brazilian  coast  is  not  300  but  400  miles  wide. 

Information  on  enemy  situation  was  given  via  Radiogram  0600. 


II.   Situation  West  Area 

1,11  n.   ■   ■  ,    ,   ■    i  ■ 

1.  Enemy  Situation: 

Radio  intelligence  intercepted  location  reports  of- a  German 
force  in  the  sea  area  of  South  Foreland „ 

2.  Own  Situation: 
Atlantic  Coast: 

No  incidents  have  been  reported. 

Channel  Coast : 

On  the  night  of  6  Aug.,  the  4th  PT  Boat  Flotilla  was  sent 
on  a  torpedo  mission  in  quadrant  BF  2298  but  failed  to  sight  any  en- 
emy vessels.   The  2nd  PT  Boat  Flotilla  carried  out  extensive  mine- 
laying  operations  in  quadrant  3192.   For  brief  reports  from  the  two 
flotillas  see  Telegram  1140.   The  5th  PT  Boat  Flotilla  has  carried 
out  its  mine  operation  according  to  plan. 

Enemy  PT  boats  and  motor  gunboats  repeatedly  attacked  the  convoy  of 
the  SCHWABENLAITD  en  route  from  Boulogne  to  Dunkirk.   Nevertheless, 
the  convoy  arrived  in  its  port  of  destination  at  0700  as  scheduled. 
The  attacks  resulted  In  brisk  engagements,  partly  at  close  range,  be- 
tween the  escort  vessels  of  the  8th  Mine  Sweeper  Flotilla  and  the 
enemy  force  which  is  estimated  to  have  consisted  of  2  to  3  flotillas. 
One  enemy  vessel  was  definitely  sunk,  2  others  were  probably  sunk, 
and  5  more  were  damaged.   Radio  intelligence  has  confirmed  that  the 
motor  torpedo  boat  MTB  "44"  was  sunk,  another  one  was  set  afire,  and 
a  third  one  entered  port  in  damaged  condition.   Our  vessels  were  re- 
peatedly hit  but  remained  fully  ready  for  action.   For  the  brief 
report  of  the  8th  Mine  Sweeper  Flotilla  see  Telegram  1520. 

The  participating  vessels  of  the  8th  Mine  Sweeper 
Flotilla  deserve  full  recognition  for  having  so 
successfully  protected  the  valuable  ship  in  their 
convoy. 

Another  engagement  occurred  during  the  same  night  off  Barfleur  between 
a  group  of  the  38th  Mine  Sweeper  Flotilla  and  some  8  British  PT  boats, 
2  of  which  were  observed  as  probably  sunk  and  others  as  hit.   For  the 
brief  report  of  the  38th  Mine  Sweeper  Flotilla  see  Telegram  1305. 


-69- 


CONFIDENTIAL 
7  Aug.  1942 

Other  enemy  PT  boats  fired  on  a  group  of  harbor  defense  vessels  off 
Calais,  but  our  vessels  remained  at  their  position  ready  for  action. 

The  mine-detonating  vessel  "170"  sank  when  hit  by  a  mine  off  Ostend. 
Attempts  are  being  made  to  salvage  the  wreck. 

The  transfer  of  3  boats  of  the  3rd  Torpedo  Boat  Flotilla  from  St.- Halo 
to  La  Pallice  is  completed.,   Due  to  another  mishap,  torpedo  boat  T 
"4"  has  remained  in  St.  Malo. 

Special  Items; 

(1)  In  July  1942,  the  enemy  carried  out  10  air  raids  on  the  forces 
of  the  Commanding  Admiral,  Defenses,  V/est.   Total  losses:   the  net 
layer  URANUS  and  the  mine  sweeper  M  "4008".   Two  steamers  and  9  small 
vessels  were  damaged. 

(2)  The  Air  Force  General  attached  to  the  Commander  in  Chief,  Navy 
has  transmitted  the  urgent  request  of  the  5th  Air  Force  to  transfer 
the  catapult  ship  SCKY.'ABENLAND  to  the  home  base  with  the  next  convoy. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation: 

Except  for  fishing  vessels,  no  ship  movements  were  sighted 
off  the  southeastern  and  eastern  coasts. 

Own  Situation: 

Along  the  Dutch  coast  and  in  the  German  Bight,  10  ground 
mines  were  swept,  4  of  them  off  Egmond-aan-Zee.   The  8th  I.!otor  l!ine 
Sweeper  Flotilla  has  executed  the  special  mission  "Erasmus  I"  ac- 
cording to  plan.   (Barrage  EBP.)   Operation  "Erasmus  II"  is  set  for 
the  night  of  7  Aug.   The  Danish  steamer  LISE  (1,247  GRT )  struck  a 
mine  north  of  Wangeroog  and  sank.   During  the  night  of  6  Aug.,  enemy 
planes  flew  in  and  out  of  the  northern  area  and.  approached  Heligoland 
and  Borkum.   It  is  assumed  that  they  dropped  mines. 

2.  Norway,  Arctic  Ocean: 

Enemy  Situation: 

At  1732  an  FW  200,  using  a  radar  location-finding  set, 
located  a  target  presumed  to  be  convoy  PQ  18,  for  the  first  time  in 
the  fog,  at  a  distance  of  about  20  km.   The  location  was  quadrant 
AB  71.   The  target  was  not  sighted. 

Own  Situation: 

A  Russian  lead-horn,ed  mine  M  08  was  cut  on  the  convoy  route 
off  Mageroe  in  the  area  of  the  Commanding  Admiral,  Norway.   On  the 
night  of  6  Aug.  (at  0020),  enemy  planes  unsuccessfully  attacked  our 
convoy  off  the  Sylte  Fjord.   On  6  Aug.,  bombs  were  dropped  on  the 
Makkaul   coast  guard  station  without  causing  any  damage. 


-70- 


CONFIDENTIAL 


7  Aug.  1942 


The  6th  PT  Boat  Flotilla  has  been  released  from  the  area  of  the  Ad- 
miral, Arctic  Ocean. 

So  far,  our  submarines  have  failed  to  regain  contact  with  convoy  PQ,  1G. 
The  Admiral,  Arctic  Ocean  considers  a  passage  south  of  Jan  I'ayen  as 
unlikely  and  intends  to  let  the  patrol  lines  remain  at  their  positions 
until  1700,  on  the  assumption  that  ice  and  fog  have  reduced  the  day's 
run  of  the  convoy.   If,  by  that  time,  contact  with  the  enemy  has  not 
been  established,  the  Admiral,  Arctic  Ocean  is  nositive  that  the  convoyl 
will  pass  either  east  or  south  of  Jan  Mayen.   In  this  case,  he  plans 
to  have  the  submarines  proceed  at  wide  intervals  in  position  to  inter- 
cept the  convoy  in  the  longitude  of  Bear  Island. 

Group  North  takes  further  into  account  the  possibility  that  convoy  PQ 
18  might  make  a  stop  at  Spitsbergen  and  then,  depending  on  the  ice 
conditions,  proceed  close  to  the  coast,  waiting  for  lower  visibility. 
With  10  of  our  submarines  involved  in  the  operation,  Group  North  con- 
siders it  impossible  that  the  convoy  can  slip  between  Bear  Island  and 
Spitsbergen  without  being  seen  or  located.  The  Group  believes  it  un- 
likely that  the  convoy  will  pass  south  of  Bear  Island. 

The  Commanding  Admiral,  Fleet  has  taken  over  the  command  of  the  naval 
forces  on  board  the  TIRPITZ. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

4 

On  the  night  of  5  Aug.,  a  Russian  submarine,  escorted  by  2 
mine  sweepers  of  the  FUGAS  class  and  several  motor  mine  sweepers,  is 
presumed  to  have  broken  through  the  "Seeigel"  minefield.   Off  Vigr-und 
a  submarine  returning  from  the  Baltic  Sea  is  trying  to  break  through  to 
Kroiistadt.   Attempts  by  Russian  naval  forces  to  bring  her  in  have  so 
far  "apparently  been  unsuccessful.   Russian  planes  are  in  action  against 
our  submarine  chasers. 

2 .  Own  Situation : 

■ 

No  incidents  occurred  in  the  area  of  the  Commanding  Admiral, 
Defenses,  Baltic  Sea.   Execution  of  the  "Duesseldorf "  mine  operation  is 
set  for  the  night  of  7  Aug.:   submarine  7J  "119"  will  lay  minefield  XIV 
consisting  of  66  rack  mines  type  A  between  57°  21.5'  II,  7°  33'  E,  and 
57°  33.5'  N,  70  23'  E. 

In  the  area  of  the  Commander,  Mine  Sweepers,  Baltic  Sea,  the  27th  Land- 
ing Flotilla  has  completed  the  "Lachs  IV"  mine  operation  according  to 
plan , 

Subchaser  "1212"  sank  east  of  Tytersaari  as  a  result  of  a  mine  hit.  20 
men  are  missing.   Mine  sweepers  I"   "19"  and  M  "17"  suffered  casualties 
through  enemy  air  attacks  off  VIgrund.   Group  North  has  urgently  re- 
quested the  1st  Air  Force  to  furnish  fighter  protection  for  this  point 
in  order  to  prevent  any  attempts  on  the  part  of  the  enemy  submarines  to 
return  to  Kronstadt  Bay.   Beginning  8  Aug.,  1  flight  of  5  fighters  will 
be  placed  at  the  Group's  disposal.   In  view  of  the  new  break  through  th£ 
"Seeigel"  minefield,  Group  North  has  ordered  that  a  minefield  be 
laid  immediately  north  of  Vigrund  and  Namsi  Bank,  on  the  assumption 
that,   so  far,   the  Russians   have  penetrated  the   "Seeigel" 


-71- 


CONFIDENTIAL 


7  Aug.  1942 


mine  field  where  the  water  was  deepest, 


V. 


Submarine  Warfare 


1.  Enemy  Situation: 

According  to  an  intelligence  report,  1  convoy  departed  from 
U.S.  harbors  to  the  British  Isles  on  5  Aug.,  and  another  left  Gibral- 
tar in  westerly  direction  on  7  Aug.   Otherwise  there  is  nothing  to  re- 
port. 

2.  Own  Situation: 


In  the  North  Atlantic,  the  concact  with  the  convoy  in 
quadrants  AJ  and  AK  was  lost  from  noon  till  around  2300.   It  was  re- 
gained in  quadrant  AK  0177.  No  successes  were  reported  from  the  op- 
erations against  this  convoy,  in  which  a  total  of  12  submarines  are 
participating. 

There  are  likewise  reports  on  successes  in  the  areas  along  the  Ameri- 
can East  Coast  and  off  the  West  Indies. 

Of  the  submarines  operating  in  the  South  Atlantic,  U  "572"  reported 
sinking  an  8,000  GRT  steamer  carrying  ammunition  in  the  Freetown  area. 
This  submarine  sighted  3  steamers  between  26  and  31  Jul.,  while  sub- 
marine U  "507"  sighted  nothing  in  the  area  from  quadrant  ES  50  up  to 
FB  93  and  back  to  FC  33  during  the  period  from  23  Jul.  to  7  Aug.   It 
may  be  that,  as  a  reaction  to  the  appearance  of  our  submarines  off 
Freetown,  the  enemy  has  stopped  all  ship  movements  or  ordered  them 
widely  dispersed. 

No  successes  have  been  reported  from  the  Mediterranean  either. 

According  to  radio  decoding,  on  5  Aug.  an  unidentified  vessel  picked 
up  31  survivors  from  the  steamer  EMPIRE  OCEAN  (6,750  GRT).   It  is 
possible  that  the  steamer  was  sunk  by  submarine  U  "458".   For  details 
see  Supplement  to  the  Submarine  Situation  in  War  Diary,  Part  B,  Vol. 
IV. 

Special  Items: 

(1)  The  Naval  Attache,  Madrid  reports  that  on  2  Aug.  submarine  U 
"573"  was  decommissioned  in  Cartagena.   The  submarine  has  since  been 
flying  the  Spanish  flag. 

(2)  On  5  Aug.,  the  Commanding  Admiral.  Submarines  reported  that  sub- 
marines U  "68",  "156",  "172",  and  "504*  will  form  a  group  named 
"Eisbaer"  and  depart  from  Lorient  by  19  Aug.  for  operations  in  the 
Cape  Town  area.   After  having  reached  the  latitude  of  the  Azores,  the 
group  is  to  proceed  In  reconnaissance  line  approximately  through 
quadrant  FE  10  to  quadrant  GG  10  where  the  accompanying  submarine  U 
"459"  will  refuel  the  group  around  22  Sep.   The  equator  will  be 
crossed  around  10  Sep.   The  Commanding  Admiral,  Submarines  has  re- 
quested general  permission  to  attack  on  the  entire  route  from  the  port 
of  departure  up  to  the  point  of  refueling,  whereas  from  south  of  that 
point  until  their  arrival  in  the  waters  off  Cape  Town,  the  submarines 
are  to  attack  only  battlep^ns,  aircraft  carriers,  and  very  large 
troop  transports. 


<* 


-72- 


CONF 


7  Aug.  1941: 


Since  none  of  our  surface  vessels  will  be  at  sea  from  east  of  15  .! ^ 
to  Cane  Town  at  the  time  when  the  submarines  enter*  the  South  Atlantic, 
the  requested  freedo/n  of  attack  could  be  granted  for  the  route  up  to 
the  refueling  point.   So  for,  the  Cape  Town  area  has  been  free  of 
submariner,,  with  the  heaviest  enemy  ship  traffic  converging  there.  If 
the  submarines  appear  there  suddenly  without  being  detected  before- 
hand, their  chances  will  bo  substantially  Improved.   However,  attacks 
by  the  submarines  on  their  approach  route  south  of  the  .equator  would 
reveal  our  elans  prematurely.   After  having  carefully  considered  all 
the  advantages  and  disadvantages,  the  Naval  Staff  is  of  the  opinion 
that  success  can  be  achieved  only  if  every  effort  is  directed  toward 
the  main  objective,  and  the  element  of  surprise  is  maintained.   Con- 
sequently, the  submarines  should  not  only  be  forbidden  to  attack 
after  they  have  crossed  the  equator  but  should  also  be  ordered  to 
avoid  being  detected.   Only  battleships  and  aircraft  carriers  nay  be 
attacked  when  it  is  sure  they  can  be  hit.   It  is  also  particularly 
important  that  the  submarines  not  communicate  by  radio  with  the  com- 
mand or  with  each  other. 

For  copy  of  the  respective  telegram  see  l/Skl  I  u  1520/42  Gkdos,  Chefs 
in  War  Diary,  Part  C,  Vol.  IV. 


VI.   Aerial  VJai-fare 

1.  British  Isles  and  Vicinity; 

Successful  raids  were  carried  out  on  Edinburgh  during  the 
day.   In  addition,  our  planes  raided  several  localities  on  the  south- 
ern coast  of  England.   During  the  night,  bombs  were  dropped  on  Aber- 
deen, Nottingham,  and  Ipswich.   Hits  were  observed. 

2 .  Mediterranean  Theater : 

Air  reconnaissance  over  the  Mediterranean  failed  to  yield 
any  results.   In  North  Africa,  air  raids  by  strong  enemy  forces  on 
our  supply  routes  were  not  very  effective.   Forces  of  the  Air  Com- 
mander, Africa,  flying  free-lance  fighter  patrol  and  fighter  cover, 
shot  down  13  planes  and  lost  one  of  their  own.   Taking  off  from 
Crete,  our  planes  carried  out  reconnaissance  and  escort  missions,  as 
well  as  submarine  chase. 

3.  Eastern  Front ; 

22  enemy  planes  were  shot  down  on  the  sectors  of  the  Central 
and  Northern  Army  Groups.   According  to  an  intelligence  report,  the 
oil  transport  on  the  Volga  has  been  alms  t  completely  suspended  to 
make  room  for  military  supply  transports  and  for  the  evacuation  of 
essential  war  cargo. 

One  patrol  vessel  was  damaged  in  the  Gulf  of  Finland. 


VII.  Warfare  in  the  Mediterranean  and  in  the  Black  Sea 

1.   Enemy  Situation,  Mediterranean; 

A  submarine  was  sighted  east  of  Kerkenna  and  another  one 


-73- 


CONFIDENTIAL 
7  Aug.  1942 

southwest  of  Crete.   According  to  an  Italian  report,  the  latter  was 
sunk  by  an  Italian  torpedo  boat  soine  55  miles  southwest  of  Cape  Krio. 
Lively  convoy  traffic  was  observed  off  the  Palestine  coast. 

According  to  a  belated  intelligence  report,  2  British  PT  boats  de- 
stroyed an  Italian  submarine  after  a  brief  engagement  off  Beirut  on 
9  Jul.   11  Italians  were  taken  prisoner.  The  same  report  states  that 
several  British  fleet  vessels  have  withdrawn  from  the  Mediterranean 
via  the  Suez  Canal. 

2.  Own  Situation,'  Mediterranean 

On  the 'night  of  5  Aug.  and  on  the  evening  of  6  Aug.,  enemy 
planes  raided  Tobruk,  causing  slight  damage. 

The  Italian  mine  operation  off  Marsa  Matruh  has  been  executed. 

3.  Transport  of  Supplies  to  North  Africa; 

Transport  of  supplies  from  Italy  and  Greece  to  North  Africa 
and  along  the  African  coast  proceeded  according  to  plan.  An  enemy 
submarine  sank  the  steamer  WACIITFELS  in  the  convoy  proceeding  from 
Crete  to  Piraeus.   The  convoy  was  escorted  by  2  Italian  torpedo  boats, 
the  auxiliary  motor  ship  BARLETTA,  and  1  submarine  chaser,  but  had  no 
air  escort.  The  majority  of  the  crew  and  passengers  were  rescued. 
Thus,  we  deplore  the  loss  of  the  last  large  German  steamer. 

On  6  Aug.,  1,699  tons  were  unloaded   in  Tobruk. 

4.  Area  Naval  Group  South: 

Aegean  Sea; 

In  view  of  the  menace  from  enemy  submarines,  movements  of 
convoys  and  small  vessels  in  the  Aegean  Sea  have  been  halted  after  the 
sinking,  in  addition  to  the  Y/ACHTFELS,  of  another  auxiliary  sailing 
vessel  on  6  Aug.  and  an  unsuccessful  six-fan  *tack  on  the  tanker 
RONDINE  on  7  Aug.  Group  South  expects  intensified  submarine  action 
by  the  enemy  against  the  supply  route  Piraeus-Crete-Africa  of  which 
he  is  now  aware.  The  Group,  therefore,  considers  it  necessary  to 
have  more  submarine  chasers  from  Italy  operate  in  this  area. 

Black  Sea; 

Enemy  Situation: 

Air  reconnaissance  reports  the  presence,  at  noon,  of  1 
cruiser,  5  small  warships,  and  2  steamers  in  Tuapse.  '  Only  light  ship 
traffic  was  observed  in  the  Novorossisk -Tuapse  area.   On  6  Aug.,  1 
submarine  was  located  in  the  vicinity  of  the  lighthouse  on  the  Tendra 
Peninsula. 

2  small  steamers  and  7  other  vessels  were  sighted  in  Primorsk  Akhtar- 
skaya  in  the  Azov  Sea  and  11  small   steamers  and  8  other  vessels  were 
sighted  off  the  harbor.   35  barges,  60  motor  boats,  20  tugs  7/ith 
barges,  and  7  large  rafts  were  observed  on  the  Volga  between  Astrakhan 
and  Stalingrad.  An  unarmed  Russian  motor  fishing  vessel  carrying 
4,500  rounds  of  anti-aircraft  ammunition  has  deserted  the  enemy  in 
Akhtarsk  and  joined  us  in  Osipenko.   According  to  the  captain's  state- 
ment, mine  fields  have  been  laid  along  the  coa-st  from  Akhtari  up  to 
Yeisk.   Essential  plants  and  shipyards  have  been  destroyed,  and  the 
coastal  batteries  at  Yeisk  and  Akhtari  are  withdrawing. 

-74- 


CONFIDENTIAL 
7  Aug.  1942 

Own  Situation: 

Convoys  in  the  Black  Sea  area  are  proceeding  according  to 
plan. 

The  Admiral,  Black  Sea  has  reported  from  headquarters  at  Kerch  that 
the  operation  of  the  1st  PT  Boat  Flotilla  off  Tuapse  is  to  be  re- 
peated during  the  night  of  9  Aug.  and  that,  due  to  the  great  distance 
from  the  operational  harbors,  no  further  forces  are  available  for  that 
mission.   Group  South  has  pointed  out  that,  in  view  of  the  fact  that 
the  approach  route  from  Feodosiya  is  180  miles  long,  the  PT  boat 
flotilla  can  remain  in  the  operations  area- for  a  very  short  time  only. 
The  Group  adds  that,  due  to  the  present  situation,  the  boats  are 
needed  for  their  assignment  against  Russian  nuisance  attacks  and  for 
flank  protection  in  operation  "Bluecher".   The  available  naval  forces 
can  be  used  farther  to  the  south  only  after  operation  "Bluecher"  has 
been  completed  and  a  base  situated  farther  south  has  become  available. 
The  Naval  Staff  has  informed  the  Armed  Forces  High  Command,  Operations 
Staff,  with  copies  to  the  Amy  High  Command  and  the  Air  Force  Opera- 
tions Staff,  that  the'  1st  PT  Bo&t  Flotilla  is  being  sent  into  action 
against  the  southbound  evacuation  transports  from  the  Tuapse  area  on 
the  night  of  7  Aug.  and  that  a  repetition  of  this  operation  is  plan- 
ned for  the  night  of  9  Aug.   Because  of  the  great  distance  between 
Tuapse  and  the  operational  harbors,  no  further  forces  are  available 
at  the  present  moment. 

Special  Items: 

(1)  The  Italian  Naval  High  Command  reports  through  the  German  Naval 
Attache  in  Rome  that,  in  order  to  prepare  and  carry  out  the  transfer 
of  further  submarine  chasers  and  small  submarines  from  Italy  and  the 
Black  Sea  to  the  Caspian  Sea,  it  is  necessary  to  have  information  on 
transport  conditions  from  Vienna  via  Rostov  and  from  the  Rumanian 
harbors  via  Rostov  to  the  Caspian  Sea.   To  save  time,  the  Italian 
Naval  High  Command  requests  the  Naval  Staff  to  agree  to  a  direct 
settlement  between  the  Italian  Naval  High  Command  and  the  Naval  Group 
South.   The  Naval  Staff  agrees  on  the  assumption  that  Group  South  will 
take  direct  action  on  all  further  steps,  with  the  Naval  Attache  in 
Rome  participating  in  the  negotiations  with  the  Italian  Naval  High 
Command.   A  plane  requested  for  gathering  the  necessary  reconnaissance 
data  must  be  made  available  from  the  area  of  Group  South.   The  Naval 
Staff  Quartermaster  Division  has  been  requested  to  assist  Group  South, 
if  necessary. 

(2)  According  to  the  findings  of  the  Naval  Staff  Intelligence  Di- 
vision, it  is  not  possible  to  transport  the  Italian  subchasers  from 
the  Black  Sea  to  the  Caspian  Sea  by  rail.   The  Intelligence  Division 
has  been  requested  to  ask  the  Intelligence  Division  East  of  the  Army 
General  Staff  for  the  most  recent  data  on  roads  north  of  the  Caucasus , 
between  the  two  seas,  obtained  during  the  latest  advance  of  the  Army. 
The  Naval  Staff  believes  that  tl.e  Russians  might  have  developed  the 
roads  even  during  the  war,  or  that  some  of  the  roads  in  the  German- 
occupied  area  are  still  being  repaired  and  improved,  a  fact  which 
would  make  it  possible  to  transport  Italian  subchasers  by  land  on 
special  truck  trailers. 


-75- 


CONFIDENTIAL 
7  Aug.    1042 

VIII.  Situation  East  Asia 
Nothing  to  report. 


IX.   Army  Situation 

1.    Russian  Front! 

Army  Group  A: 

Rumanian  forces  have  reached  the  area  before  Yeisk.   The 
southward  advance  continues  against  weaker  enemy  resistance.   Our 
troops  have  reached  Labinskaya  south  of  Arnavir.   Hear  Armavir,  fight- 
ing occurred  between  our  troops  and  armed  civilians,   llorth  of  Petrov- 
skoe,  our  troops  took  Ipatovo. 

Army  Group  D: 

The  enemy  forces  located  west  of  Kalach  were  trapped  after 
our  troops  closed  the  ring  around  them  from  the  south,  along  the  Don 
River.   Break-out  attempts  are  being  prevented.   The  enemy  penetra- 
tion north  of  Korotoyak  has  been  somewhat  widened.   Fighting  is  still 
in  progress  against  the  enemy  forces  which  had  penetrated  into  the 
area  near  Voronezh. 

Central  Army  Group; 

The  enemy  failed  in  his  efforts  to  widen  the  penetration 
southeast  of  Rzhev.   Our  troops  are  fighting  hard  to  mop  up  the  breach. 

Northern  Army  Group: 

Combat  activities  are  in  progress  against  the  enemy  troops 
v/hich  had  infiltrated  into  the  area  southeast  of  St&raya  Russa.  Enemy 
attacks  north  of  Novgorod  and  in  the  area  of  Soltsy  were  unsuccessful. 
Artillery  fire  shattered  attacks  and  concentrations  of  enemy  troops  in 
the  Leningrad  area.  ^ 

2.  Finnish  Front; 

No  noteworthy  combat  activities  are  reported. 

3.  North  Africa; 

Reconnaissance  and  artillery  activity  as  usual.   Lively 
activity  of  enemy  air  forces  is  reported. 


-76- 


CONFIDENTIAL 
8  Aug.  1943 

Items  of  Political  Importance 

Reuter  reports  that  the  British  and  the  U.S.  Ambassadors  arrived  in 
Moscow  from  Kuibyshev.  The  U.S.  Ambassador  in  Ankara  is  also  re- 
ported to  be  on  his  way  to  Moscow,  as  are  the  representatives  of  the 
Fighting  French  and  of  Norway.   The  meeting  of  these  diplomats,  in 
conjunction  with  the  reports  about  Churchill's  stay  in  Moscow  and 
about  the  presence  there  of  U.S.  General  Bradley,  indicates  that 
questions  of  decisive  importance  are  being  discussed  at  the  present 
moment.   The  negotiations  will  probably  center  on  the  establishment 
of  a  second  front  in  Europe,  considering  that  Churchill  probably  went 
to  Moscow  in  order  to  convince  Stalin  that  Russia  must  under  all  cir- 
cumstances stick  by  the  Allies,  even  if  she  has  to  suffer  further 
heavy  losses  of -territory  and  life.  Such  losses  could  not  be  averted 
even  if  a  second  front  were  established,  as  is  now  being  discussed. 

In  other  quarters,  the  discussion  for  and  against  the  establishment 
of  a  second  front  in  Europe  is  still  going  on.   For  details  see 
Political  Review  No.  184,  Paragraph  1. 

Concerning  the  shipping  situation  of  the  enemy  powers,  the  head  of 
the  U.S.  War  Production  Board  has  recommended  that  transport  plane 
production  be  at  least  doubled,  and  that  certain  bomber  types  be 
converted  into  transport  planes.   The  same  agency  has  established 
a  priority  list  for  shipping  in  order  to  curb  imports. 

Great  Britain: 

The  First  Lord  of  the  Admiralty  said  in  a  speech  dealing  with  the 
achievements  of  the  British  Navy  that  despite  heavy  losses  more 
ships  are  at  present  under  the  Admiralty's  control  than  were  in 
November  1918.  Considerable  losses  are  constantly  being  inflicted 
on  enemy  submarines,  but  -details  cannot  be  disclosed. 

According  to  a  statement  by  the  Food  Minister,  Great  Britain  has 
ample  bread  supplies,  and  the  food  stocks  are  larger  than  at  the 
beginning  of  the  war.  A  further  cut  in  the  meat  ration  may,  how- 
ever, prove  inevitable. 

India: 

On  7  Aug.,  the  long-awaited  session  of  the  All-India  Congress  Com- 
mittee was  opened  as  scheduled.   The  Committee  will  address  letters 
to  Roosevelt,  Chiang  Kai-shek,  Maisky,  and  other  Allied  leaders, 
with  the  request  to  support  the  Congress  which  will  resist  a 
Japanese  invasion  with  all  weapons  of  war  as  soon  as  the  new  resolu- 
tion has  been  adopted.  Gandhi  sent  a  special  message  to  the  Chinese 
people,  stating  that  India  is  fighting  not  only  for  her  own  libera- 
tion but  for  the  defense  of  China  as  well. 

Portugal : 

A  report  from  a  diplomatic  source  states  that  after  the  failure 
of  previous  negotiations  the  British  Government  has  now  presented 
an  ultimatum  to  Portugal  demanding  permission  for  South  African 
troops  to  proceed  to  Lourenco  Marques  via  Mozambique.   The  ultimatum 
also  demands  authorization  for  the  erection  of  a  bunker  station  in 
Lobito,  evidently  intended  for  refueling  convoys.  Salazar's 
pessimism  and  ill  health  are  indicative  of  the  amount  of  British 
pressure  being  brought  to  bear  on  the  Portuguese  Government. 

-77- 


CONFIDENTIAL 


8  Aug.  1942 


Turkey; 

On  6  Aug. ,  the  new  government  received  a  unanimous  vote  of  confi- 
dence from  the  National  Assembly. 

A  French  source  reports  that  the  Turco-Syrian  frontier  has  been 
closed. 

In  his  report  on  the  military  and  political  situation,  the  German 
Naval  Attache  states  that  Turkey's  interest  continues  to  be  focused 
almost  exclusively  on  the  North  African  theater  of  war.  Turkey  fears 
with  good  reason  that  if  Egypt  and  the  Suez  Canal  fall  she  will  be 
cut  off  economically  and  will  no  longer  hold  the  balance  of  power 
of  forces  in  the  eastern  Mediterranean  which  so  far  has  enabled  her 
to  maintain  the  desired  neutrality.   There  are  as  yet  no  indication 
of  a  basic  change  in  Turkey's  attitude.   This  attitude  will  depend 
on  the  further  development  of  operations  in  Russia  and  Egypt. 

Brazil: 

The  official  German  News  Agency  (DNB)  reports  that,  according  to  an 
announcement  in  Stockholm  by  the  Brazilian  Government,  only  483 
German  citizens  have  been  interned  in  Brazil,  while  more  than  100,000 
continue  their  occupations  completely  at  liberty.   Furthermore, 
only  a  very  small  amount  of  property  belonging  to  German  citizens 
was  confiscated  as  compensation  for  Brazilian  ship  losses  and 
casualties. 


♦ 


Special  Items: 

I.  According  to  an  investigation  by  the  Naval  Intelligence  Divi- 
sion, Foreign  Merchant  Marine  Branch,  the  losses  in  enemy  or  enemy- 
controlled  merchant  ship  tonnage  during  the  month  of  July  1942 
amounted  to  a  total  of  944  vessels  or  1.095.894  GRT. 

Of  these,  107  vessels  totalling  563,316  GRT  were  sunk  by  our  sub- 
marines 

11  vessels  totalling  46,760  GRT  were  sunk  by  our  sur- 
face vessels 

5  vessels  totalling   3,446  GRT  were  sunk  by  mines 

and       28  vessels  totalling  149,554  GRT  were  sunk  by  planes. 

The  German  share  in  the  sinkings  totals  162  vessels  or  approxi- 
mately 790,000  GRT,  while  the  re6t  is  to  be  attributed  to  the 
Italians  and  Japanese. 

II.  For  the  directive  of  the  Commander  in  Chief,  Navy  to  the  Group 
Commands,  the  Fleet,  the  Commanding  Admiral,  Submarines,  and  the 
German  Admiral,  Rome  concerning  methods  of  dealing  with  differences 
of  opinion  in  the  War  Diaries  see  l/Skl  I  a  17891/42  Gkdos.  in  War 
Diary,  Part  B,  Vol.  V.. 

III.  In  News  Analysis  "Foreign  Navies"  No.  39  the  Naval  Staff  In- 
telligence Division,  Foreign  Navies  Branch  reports  on  the  oil  con- 
sumption of  the  British  Navy  in  the  various  areas.   The  total  an- 
nual consumption  for  the  British  Navy  is  estimated  at  5,400,000  tons. 


* 


-78- 


CONFIDENTIAL 
8  Aug.  1943 

Situation  8  Aug.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation; ' 

On  7  Aug.  at  2338  ship  "23"  sent  the  following  message: 
"No  steamer  traffic  in  quadrants  GC,  FS,  FL,  FM,  FN,  FU,  GG."   The  , 
Naval  Staff  confirmed  the  message  via  Radiogram  0122. 

At  0017,  another  short  signal  which  could  not  be  understood,  was 
received  from  ship  "23".  Via  Radiogram  1217,  the  ship  was  asked 
to  repeat  the  message. 

Ship  "28"  sent  the  following  message:   "Have  dismissed  supply  ship. 
Supply  ship  has  1,500  tons  of  fuel  left.  Have  handed  over  104 
prisoners."   The  Naval  Staff  confirmed  the  message  via  Radiogram 
0532.   The  Naval  Staff  concludes  from  the  message  sent  by  ship  "23". 
at  2338  that  ship  "23",  in  agreement  with  ship  :,28",  made  a  recon- 
naissance voyage  through  the  above-mentioned  large  quadrants  of  the 
South  Atlantic  and  that  she  was  communicating  this  to  Bhip  "28". 
The  Naval  Staff  assumes  that  the  second  message  may  have  contained 
information  on  ship  movements.,   The  few  messages  intercepted  by 
the  radio  intercept  service  confirm  the  report  from  ship  "23".   The 
Naval  Staff  believes  that  there  is  now  less  traffic  in  the  central 
part  of  the  South  Atlantic  than  in  the  past  few  months,  although 
there  is  still  a  little.  Via  Radiogram  1501,  the  Naval  Staff  in- 
formed ship  "23"  and  ship  "28"  of  this  assumption.   From  the  message 
sent  by  ship  "28"  at  0317  the  Naval  Staff  concludes  that  ship  "28" 
is  again  fully  replenished  with  fuel,  and  that  the  CHARLOTTE 
SCHLIEMANN  has  been  dismissed  according  to  orders. 

Ship  "28"  is  being  notified  of  this  assumption,  as  well  as  of  the 
fact  that  the  CHARLOTTE  SCHLIEMANN  has  been  informed  that  she  may 
expect  to  leave  the  South  Atlantic  for  Japan  toward  the  end  of 
August.   Should  the  SCHLIEMANN  already  have  set  out  on  her  voyage 
to  Japan,  ship  "28"  ia  requested  to  indicate  by  number  the  date 
of  the  departure  of  the  SCHLIEMANN  when  convenient.   (See  Radio- 
gram 1738.) 

Information  on  the  enemy  situation  is  sent  out  via  Radiogram  2142. 


II.   Situation  West  Area 

1.   Enemy  Situation: 

An  intelligence  report  states. that  on  15  Jul.  a  fast 
convoy  of  16  or  17  ships,  including  the  AQUITANIA  and  a  large 
American  ship  carrying  troopB  from  the  U;S.A.,  arrived  in  the 
ports  of  northern  Ireland.   The  convoy  made  the  passage  in  9  days 
and  returned  empty  after  4  or  5  days.   The  unloading  was  per- 
formed in  3  shifts.   The  majority  of  the  light  escort  vessels  pro- 
ceeded to  Limavady,  a  U.S.  battleship  to  Scotland.   The  cruiser 
CHESTER  was  in  Belfast. 

-79- 


CONFIDENTIAL 
8   Aug.    1942 

2.   Own  Situation: 

Atlantic  Coast: 

A  mine  sweeper  removed  a  ground  mine  off  St.  Nazaire. 

Due  to  a  change  in  the  state  of  readiness  of  the  blockade-runners, 
the  Naval  Staff  intends  to  change  the  sailing  schedule  and  to  have 
the  following  ships  deoart  during  the  new-moon  period  in  September: 
the  PASSAT,  the  PIETRO  ORSELO,  the  IRENE,  the  SPICHERN,  the 
BURGENLAND,  the  RIO  GRANDE,  and  the  BRAKE. 

Group  West  is  being  notified  accordingly  and  directed  to  Drepare 
and  provide  for  the  departure  of  all  these  ships.   Depending  on  the 
situation,  Group  West  will  have  to  see  how  many  ships  can  actually 
leave.  Copy  of  the  directive  as  per  l/Skl  I  k  1527/42  Gkdos.  Chefs 
in  War  Diary,  Part  C,  Vol.  XI. 

Channel  Coast: 

6  vessels  of  the  4th  PT  Boat  Flotilla  have  arrived  in 
Boulogne.   Transfer  of  the  SCHWABENLAND  from  Dunkirk  to  Flushing 
is  set  for  the  night  of  8  Aug. 


III.  North  Sea.  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

No  noteworthy  reports  have  been  received.   Unfavorable 
weather  conditions  badly  hampered  air  reconnaissance  operations. 

Own  Situation: 

Due  to  bad  weather,  special  mission  "Erasmus  II"  (barrage 
SW  102)  had  to  be  broken  off.  Mine-detonating  vessels  and  mine 
sweepers  removed  a  number  of  ground  mines,  including  2  north  of 
Egmond-aan-Zee.   In  the  evening  the  catapult  ship  SCHWABENLAND  set 
out  on  her  voyage  from  Flushing  to  Rotterdam.  At  noon,  enemy 
planes  unsuccessfully  attacked  an  anti-aircraft  ferry  in  the 
Scheldt  estuary  and  the  Rhine  flotilla  in  the  fairway  of  Wieling. 
On  the  night  of  8  Aug.  enemy  planes  flew  over  the  German  Bight, 
and  probably  dropped  mines  in  that  area. 

Special  Items: 

The  Armed  Forces  High  Command,  Operations  Staff  announces 
that  the  Commanding  General,  Armed  Forces,  West  will  not  agree  to 
the  changes  in  the  Navy's  sector  boundaries  as  suggested  by  the 
Commander,  Army  Group,  Netherlands.   Thus  the  sectors  previously 
established  by  the  Navy  will  remain  in  force. 

2.  Norway.  Arctio  Ocean: 
Enemy  Situation: 

On  7  and  8  Aug.,  air  reconnaissance  reported  the  Hinlopen 


-80- 


8  Aug.  1942 


Strait  and  the  Olga  Strait 
small  drift  ice  areas  were 
pass.   Extensive  fogs  were 
bergen,  reaching 
not  be  located. 


CONFIDENTIAL 


(Spitsbergen)  free  of  pack  ice.   Only 
observed  there.   Steamers  can  probably 
observed  between  Eear  Island  and  Spits- 
as  far  as  Jan  May  en.   Therefore  convoy  PQ  18  could 


Radio  intelligence  located  2  BritiBh  vessels  in  the  Archangel  area 
up  to  the  southern  outlet  of  the  Gcrlo  Strait. 

Own  Situation? 

Russian  moored  M  08  mines „  some  of  which  were  rusty,  were 
swept  in  the  Porsanger  Fjord."  2  Russian  mines  were  swept  on  route 
"Rot"  near  point  70.   It  is  quite  possible  that  the  Russians  have 
anti-sweeping  devices  in  that  location.   Enemy  planes  raided  the 
coast  guard  station  and  battery  at  Havningsborg  and  near  Kiborgnos 
without  causing  any  damage.   Convoy  and  transport  operations  pro- 
ceeded according  to  plan. 

Group  North  has  agreed  to  the  transfer  of  3  Ar  196  planes,  as  sug- 
gested by  the  Fleet  Command,  after  the  LUETZOW  has  been  brought 
back  to  the  Baltic  Sea. 

Group  North  has  submitted  the  operations  order  of  the  Fleet  Command 
for  the  transfer  of  the  cruiser  LUETZOW  from  Trondheim  to  the  Baltic 
Sea  (code  name  "Eiche").  Escort  is  to  be  furnished  by  the  torpedo 
boats  T  "6",  "15",  "9",  "12",  and  the  tender  F  "1".   The  earliest 
date  is  set  for  9  Aug.,  the  latest  for  15  Aug. 


IV.   Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea 

1,  Enemy  Situation; 

According  to  a  report  from  the  Naval  Attache  in  Stockholm, 
the  Swedish  Navy  announced  that  it  is  taking  very  energetic  action 
against  the  Russian  submarines  in  accordance  with  orders  issued  to 
the  Swedish  naval  forces.   The  Swedish  Navy  is  convinced  that  it  has 
definitely  sunk  3  Russian  submarines. 

2.  Own  8it\iation; 

Operation  "Dueseeldorf "  has  been  carried  out  as  planned. 

Patrol  and  convoy  pperations  in  the  area  of  the  Commanding  Admiral, 
Defenses,  Baltic  Sea  proceeded  as  scheduled,  without  incidents. 

Operations  "Seehund  I"  and  "Seehund  II"  in  the  area  of  the  Commander, 
Mine  Sweepers,  Baltic  Sea  were  broken  off  because  of  unsafe  naviga- 
tion.  1  landing  craft  ran  aground.   4  mines  were  6wept  in  the  gap 
of  the  "Nashorn"  mine  field.   The  Finns  report  that  a  small  Russian 
vessel  struck  a  mine  in  mine  field  "Seehund  IV"  and  sank. 

Convoy  and  transport  operations  proceeded  according  to  plan,  without 
any  incident. 


-01- 


CONFIDENTIAL 


8   Aug.    1942 


V.    Merchant  Shlnping 

According  to  an  intelligence  report,  there  ia  no  doubt  that 
Great  Britain  has  withdrawn  about  300,000  to  330,000  tons  from  the 
freight  traffic  during  the  last  4  to  6  weeks  and  is  keeping  them 
in  the  British  Isles.  So  far,  it  has  not  been  possible  to  ascertain 
which  vessels  were  withdrawn  or  any  other  details.   The  report 
deserves  attention  as  a  possible  indication  that  ships  are  being 
made  ready  for  landing  operations. 

The  Naval  Intelligence  Division,  Foreign  Merchant  Marine  Branch 
reports  in  Brief  Report  No.  24/42  about  the  number  and  kind  of 
ships  and  ship  movements  in  Gibraltar  during  the  month  of  July, 
about  tungsten  shipments  from  Spain  and  Portugal  to  the  British 
Isles,  and  about  transport  flying  boat  construction  in  the  U.S.A. 
(5,000  70-ton  Mars  flying  boats). 

The  same  report  contains  a  critical  analysis  of  ship  production 
in  the  U.S.A.   According  to  this  analysis,  the  production  in  the 
U.S.A.  began  with  15  ships  in  January  1942  and  gradually  increased 
to  71  ships  totalling  535,000  GRT  in  July.  All  in  all,  the  ship- 
yards in  the  U.S.A.  turned  out  301  ships  totalling  2,200,000  tons 
during  the  first  half  of  1942,  in  Britain  87  ships  totalling  630,000 
tons,  in  Canada  30  ships  totalling  225,000  tons,  making  a  total  of 
418  ships  or  3,078,000  tons  in  the  3  countries.   From  this  rate  of 
development  the  Naval  Intelligence  Division  concludes  that  nearly 
5,000,000  tons  of  new  ships  will  have  been  added  by  the  end  of  1942, 


VI.   Submarine  Warfare 

1.  Enemy  Situation; 

Radio  intelligence  intercepted  special  orders  issued  to 
a  U.S.  plane  for  finding  a  German  submarine  which  had  been  sighted. 
The  U.S.  naval  authorities  have  declared  a  mined  area  near  Cape 
Hatteras  where  ships  are  not  permitted  to  sail  except  under  control 
of  naval  authorities. 

2.  Own  Situation: 

3  submarines  are  reported  to  have  departed  recently  from 
Germany  and  2  are  reported  to  be  outward  bound  from  the  harbors  of 
western  France. 

Ground  fog  and  poor  visibility  outside  the  fog  areas  prevented  the 
submarines  of  group  "Nebelkoenig"  from  making  contact  with  what 
was  assumed  to  be  convoy  PQ  18.  9  of  the  boats  have  been  assigned 
new  attack  areas  in  quadrants  AB  3532,  3512,  3546,  3593,  3821, 
3917,  3859,  3975,  and  6234.   Submarine  U  "255",  the  10th  in  the 

froup,  i8  to  patrol  the  eastern  exit  of  the  Hinlopen  Strait 
Spitsbergen)  at  approximately  22°   E.   The  2  boats  in  the  eastern 
seotor  of  the  operations  area  are  to  take  up  their  oositions  in 
quadrants  AC  98  and  99,  with  permission  to  advance  to  quadrant 
AW  32  if  necessary. 

The  operation  against  the  eastbound  convoy  in  quadrant  AK  was 
continued.  However,  fog  and  rain  squalls  greatly  hampered  the 
use  of  arms.   Submarine  U  "704"  reports  that  one  7,000  GRT  steamer 


-82- 


CONFIDENTIAL 
8  Aug.  1942 

and  one  4,000  GRT  steamer  in  this  convoy  were  torpedoed  and  2 
st earners  totalling  15,000  GRT  sunk.   Other  submarines  reported 
misses,  and  that  they  were  driven  off  by  escort  forces. 

Submarine  U  "254"  reports  2  probable  hits  on  1  destroyer  in  the 
North  Atlantic  (quadrant  AE  7137)  on  1  Aug. 

Submarine  U  "508"  reports  1  definite  and  1  probable  hit  on  a  group 
of  vessels  in  the  West  Indies.   From  the  same  area,  submarine 
U  "155"  reports  sinking  a  9,000  GRT  tanker  in  quadrant  EO  61  and 
the  steamer  DRACO  (2,018  GRT)  by  gunfire. 

Submarine  U  "109"  of  the  South  Atlantic  group  sank  the  armed  tanker 

ARTHUR  W.  SEWALL  (6,030  GRT). 

Thus  definite  sinkings  alone  totalled  40,048  GRT  on  that  day. 

For  details  see  supplement  to  the  submarine  situation  in  War  Diary, 
Part  B,  Vol.  IV. 


VII.  Aerial  Warfare 

i 

1 .  British  Isles  and  Vicinity; 

Main  targets. of  our  raids  were  Poole  during  the  day  and 
Leeds  at  night. 

During  the  night,  small  numbers  of  enemy  planes  flew  over  Jutland 
and  the  Baltic  Sea  entrances  as  far  as  Kiel  and  Heide,  evidently 
with  the  purpose  of  dropping  mines. 

No  bombs  were  dropped  in  the  west  area. 

2.  Mediterranean  Theater; 

Our  fighter  attacks  on  Malta  resulted  in  3  enemy  planes 
shot  down.   20  Me  109' s  fought  against  35  Curtiss  planes.   Our 
fighter-bombers  scored  well-placed  hits  in  their  operations  against 
enemy  motor  vehicle  concentrations  in  Alamein.   On  the  night  of 
7  Aug.  enemy  planes  carried  out  heavy  raids  on  Tobruk  and  Marsa 
Matruh. 

For  reconnaissance  results  in  the  eastern  Mediterranean  see  Enemy 
Situation,  Mediterranean. 

3.  Eastern  Front; 

Reconnaissance  flights  were  carried  out  over  the  Black 
Sea  and  the  Sea  of  Azov,  as  well  as  over  the  Arctic  Ocean.  For 
results  see  Enemy  Situation,  Black  Sea  and  Arctic  Ocean.  A  Ju  88 
attacked  an  enemy  mine  sweeper  off  Lavansaari  in  the  Gulf  of 
Finland.   Effects  were  not  observed. 


-83- 


CONFIDENTIAL 


8  Aug.    1942 


VIII.  Warfare  in  the  Mediterranean  and  Black  Sea 

1.   Enemy  Situation.  Mediterranean: 

No  reports  have  as  yet  been  received  concerning  the 
EAGLE  task  force.   The  radio  intercept  service  reports  that  a 
British  plane  dropoed  depth  charges  on  1  submarine  in  the  western 
Mediterranean.  A  British  submarine  was  sighted  off  Cape  Vaticano. 
German  air  reconnaissance  reports  that  1  mine  sweeper  was  proceed- 
ing with  6  small  vessels  on  a  northwesterly  course  off  Valletta. 
On  7  Aug.  photographic  reconnaissance  located  2  cruisers,  5  des- 
troyers, 3  escort  vessels,  4  tankers,  8  steamers,  and  other  vessels 
in  Beirut.  Ship  traffic  observed  in  the  Port  Said  area  was  light. 

2.   Own  Situation.  Mediterranean; 

Enemy  air  raids  on  Tripoli  and  Bardia,  carried  out  on 
the  night  of  7  Aug.,  failed  to  cause  any  damage.  At  dawn  enemy 
planes  attacked  the  Italian  landing  craft  which  had  entered  Marsa 
Matruh.   2  barges  sank,  while  a  third  one  suffered  engine  damage. 
The  main  pier  of  Tobruk  was  completely  destroyed  in  the  air  raid 
on  6  Aug.  The  steamer  ANKARA,  loaded  with  German  supplies,  was 
slightly  damaged.   On  the  basis  of  a  communication  received  from 
the  Commanding  General,  Armed  Forces  South,  the  German  Naval  Command, 
Italy  reports  that  the  air  defenses  of  Tobruk  have  been  reinforced 
by  a  heavy  battery  and  the  air  defenses  of  Marsa  Matruh  by  a  third 
medium  battery.   The  light  half-battery  in  Bardia  is  to  be  rein- 
forced by  another  half-battery.   The  question  of  air  escort  for 
convoys  proceeding  to  Tobruk  and  Marsa  Matruh  has  been  settled 
with  the  Italian  Air  Force.  Our  planes  can  be  used  as  reinforce- 
ments. 


Concerning  the  state  of  readiness  of  the  naval  forces  under  its 
cormand,  the  German  Naval  Command,  Italy  reports  as  follows: 


a.  3rd  PT  Boat  Flotilla: 


2  boat 8  ready  for  action  in  Marsa  Matruh 
2  in  Su1a,  4  in  Augusta.   Out  of  Com- 
mission:  4  boats 


6th  Motor  Mine  Sweeper 
Flotilla: 


c.   2nd  Landing  Flotilla: 


4  boats  ready  for  action  in  North  Africa, 
2  boats  out  of  commission,  1  boat  was 
lost.  Attempts  are  being  made  to  sal- 
vage the  8th  boat  in  Bardia. 

Of  the  35  landing  craft  completed,  10 
have  been  lost,  3  are  in  repair,  6  are 
being  brought  back  for  complete  over- 
haul, and  5  are  being  equipped.  11 
barges  are  in  North  Africa,  all  ready 
for  action. 

In  view  of  the  increasing  damage  to  these  vessels,  the  German  Naval 
Command,  Italy  declares  that  it  is  urgently  necessary  to  provide 
light  armor  elating  for  engines,  guns,  and  command  stations,  as 
proved  effective  in  the  area  of  the  Commanding  Admiral,  Defenses, 
'Test. 

The  Naval  Staff  Quartermaster  Division  will  act  on  the  matter. 

3.   Transport  of  Supplies  to  North  Africa: 

Transport  of  supplies  from  Italy  and  Greece  to  North 
Africa  and  along  the  North  African  coast  proceeded  according  to 


# 


-84- 


CONFIDENTIAL 
8  Aug.  1942 

plan,  with  no  incidents  to  report.  For  details  see  Telegram  1230. 

4. '   Area  Naval  Group  South; 

Aegean  Sea; 

The  submarine  chase  brought  no  results.  In  connection 
with'  tlfe  loss  of  the  steamer  WACHTFELS,  Group  South  transmitted  as 
preliminary  information  the  report  from  the  Admiral,  Aegean  Sea, 
whom  the  Commanding  General,  Armed  Forces,  South  had  also  asked  for 
a  statement  on  this  matter;  according  to  this  report,  someone  on 
the  staff  of  the  Admiral,  Aegean  Sea  was  responsible  for  neglecting 
to  obtain  the  necessary  air  escort  for  the  convoy.  A  court-martial 
investigation  has  been  ordered.   For  details  see  Telegram  2045. 

Convoy  operations  proceeded  according  to  plan. 

Black  Sea: 

Enemy  Situation; 

German  air  reconnaissance  observed  a  small  number  of  ships 
in  the  harbor  and  moderate  traffic  along  the  southeast  coast  of  the 
Sea  of  Azov  moving  generally  toward  the  south.  Movements  of  small 
southbound  vessels  were  also  observed  in  the  Kerch  Strait,  and  light 
traffic  was  observed  in  the  Novoroesisk-Tuapse  area. 

Own  Situation: 

On  7  Aug.,  a  submarine  unsuccessfully  attacked  a  south- 
bound convoy  north  of  Sulina.   Submarine  chasers  have  been  sent 
into  action.  On  6  Aug.,  a  detonation  was  observed  in  our  anti- 
submarine barrage  southeast  of  Balcik. 

On  the  night  of  7  Aug.  another  12  landing  craft  passed  through  the 
Kerch  Strait  toward  the  north  without  making  contact  with  the  enemy. 
The  last  breakthrough,  with  3  landing  craft,  is  set  for  the  night 
of  8  Aug. 

On  the  night  of  7  Aug.  3  Italian  submarine  chasers  took  up  their 
positions  in  the  patrol  line  south  of  Cape  Opuk  in  order  to  pro-, 
tect  the  break-through  of  the  landing  craft-. 

On  the  afternoon  of  7  Aug.  4  boats  of  the  1st  PT  Boat  Flotilla  de- 
parted from  Tuapse  into  their  area  of  operations. 

5.   Special  Items: 

The  Naval  Staff  Operations  Division  informs  the  Naval 
Staff  Quartermaster  Division  of  its  opinion  on  the  tasks  of  the 
Nikolayev  shipyard  as  planned  by  the  Naval  Construction  Division 
( see  War  Diary  3  Aug.). 

For  copy  l/Skl  I  a  19013/42  Gkdos.  in  War  Diary,  Part  C,  Vol.  XIV  a. 


-85- 


CONFIDENTIAL 
8  Aug.  1942 

IX.   Situation  East  Asia 
Nothing  to  report. 


X.    Army  Situation 

1.  Russian  Front; 

Army  Group  A; 

Parts  of  a  Rumanian  division  are  fighting  for  the  pos- 
session of  Yeisk. 

The  German  and  Rumanian  forces  pushing  toward  the  south  reached  the 

region  of  Angeliskaya  on  their  advance  along  the  railway  line  to 

Krimskaya.   The  troops  advancing  toward  Krasnodar  broke  through  the 

strong  fortifications  and  the  anti-tank  ditch  25  km  north  of  Krasnodar  m 

are  now  engaged  in  a  fight  with  strong  enemy  defense  forces.  Ad-  ~ 

vance  detachments  of  the  13th  Panzer  Army  are  8  km  from  Maikop. 

East  of  this  point,  1  motorized  division  crossed  the  Laba  River.  2 

panzer  divisions  pushing  southeast  from  the  Voroshilovsk  area  have 

reached  the  area  of  Aleksandrovskoye  and  the  area  west  of  Pyatigorsk 

without  making  contact  with  the  enemy.   An  infantry  division  is 

advancing  on  both  sides  of  the  Sal  River  from  Remontnaya  toward  the 

east. 

Army  Group  B: 

The  XLVIII  Panzer  Corps  is  engaged  in  a  fierce  battle 
south  of  8talingrad  where  the  enemy  is  constantly  getting  rein- 
forcements.  The  enemy  forces  west  of  Kalach  are  being  cut  off  with 
increasing  effect.   Outside  the  Italian  positions  in  the  Baskovski 
area  the  enemy  succeeded  in  crossing  the  Don  River.   West  of  Svoboda, 
Hungarian  units  are  fighting  with  armored  enemy  forces  at  the  Don 
River. 

Central  Army  Group; 

Stubborn  fighting  in  the  vicinity  of  Rzhev  continues.  fl 

The  enemy  succeeded  in  gaining  ground  on  bo.th  flanks  of  the  point 
of  penetration.   New  German  forces  launohed  a  counterattack. 

Northern  Army  Group; 

Enemy  troops  made  unsuccessful  attacks  near  Kholra,  at 
the  land  bridge  southeast  of  Staraya  Russa,  and  near  Soltsy. 

2.  Finnish  Front: 

Enemy  attacks  northwest  of  Leningrad  were  repulsed. 
Finnish  artillery  attacked  enemy  assembly  positions  on  the  Svir 
front  and  near  Povlents. 

An  enemy  attack  is  expected  on  the  Loukhi  front. 

3.  North  Africa; 

So  far  no  report  has  been  received. 

-86- 


CONFIDENTIAL 
8  Aug.   1942 

4.        Speolal  Item: 

For  the  report  of  the  Naval  Liaison  Officer  with  the  Army 
General  Staff  made  to  the  Chief  of  Staff,   Naval  Staff  containing 
information  on   the  Army  situation  on  8  Aug.    see  File   "Barbarossa". 

************************* 


-87- 


CONFIDE:: HAL    ' 

9   Aug,    I9I42 
Sunday 

Items    of    Political   Importance 

The  United  Press   reports   that   the   purpose    of   the   Moscow   confer- 
ence  is    to  work   out   a   joint    strategic   plan,    pointing    out    that 
there  "are    11   different   Allied  high  commands    as   contrasted  with 
the    tight    organization   of  the   German  Armed  Fo.-ces.     According    to 
another  United  Press    report,   General  Bradley  is   negotiating   about 
increased  plane   deliveries.      He   is   said   to  have   declared  that 
the   problem  of   the   second  front    does   not   come    under  his   authority. 

U.S.A. : 

The  Navy  Department  published  a  report  on  the  Amerio-an  conduct 
of  the  war  and  on  war  production  during  the  first  8  months.   So 
far,  American  industrial  production  is  considered  unsatisfactory. 
luost  urgently  needed  are  small  naval  forces,  designed  to  cope 
with  the  submarine  menace.   During  the  first  6  months  ship  losses 
exceeded  the  number  of  nev.ly  built  ships;  at  present,  however, 
the  losses  have  decreased  and  the  number  of  new  ships  has  grown. 

India : 

Eeuter  reports  that  the  All -India  Congress  Committee  has  passed 
the  freedom  resolution  of  the  working  committee.  On  9  Aug.  the 
British  Government  in  India  had  Gandhi  and  other  Indian  Congress 
leaders  arrested  in  Bombay.   At  the  same  time,  it  authorized  the 
governments  of  the  provinces  to  suspend  the  authority  of  the 
local  agencies  throughout  the  entire  country  whenever  they  con- 
sider such  a  measure  necessary  for  the  maintenance  of  peace  and 
order.   This  confirms  the  previously  expressed  assumption  that 
the  British  Government  is  determined  to  keeo  the  situation  in 
India  under  control  by  applying  the  strongest  measures. 

Japan; 

A  report  from  Japanese  Headquarters   about   a   major    engagement 
between   the    Allied   and  Japanese   naval  forces    off    the   Solomon 
Islands    indicates    that  the    Allies,    particularly   the  Americans, 
are   making   an  attempt    to   obiain  control   of.  the  strategically 
important   points   in   the   South  Pacific    in  order  to  protect   their 
sea  routes    to  Australia    and  Australia  herself.     For   details 
see   Situation   East   Asia. 


Special  Items ; 

I.        In  a  detailed  situation  report,    the   Naval   Staff   Operations 
Division   expressed  its   views   about   pocket  battleship   operations 
in  foreign  waters    during    the   coining   winter.      The   report   comes    to 
the   conclusion   that   the   prospect    of   success  for    operations    in   the 
South  Atlantic,    South   Pacific   and   possibly   in   the  Indian   Ocean 
is   as   good   as   before   June   19i|l  when    the   SCIIEEK  carried   out  her 
first   successful   operation.      In   addition    to  the   expected   sinkings, 
the   appearance    of  a   pocket  battleship  will  force    the   enemy  to  take 
much  stronger  defense  measures   than   at   present.      Consequently  he 
will  withdraw   forces   from  other  theaters,    if   he   feels    that   he   can 
do  so.      In  view    of    the   present    over-all   situation,    the   Naval   Staff 

-88- 


CONFIDENTIAL 
9   Aug .    191+2 

rates   the   indirect   effects    of   the   appearance    of   a  pocket  battle- 
ship in  foreign  waters   extremely  high.      Actually,    only  in   the 
South  Atlantic  would  an   operation  be  feasitle   during   the  short' 
period   of   2  months   available,   but   this    period  would  be   sufficient 
for  giving   the   pocket  battleship   the    chance   to   operate   effectively 
in  all  areas   of   the   South  Atlantic.      Enemy  countermeasures  will 
not  have   to  be  taken   into  account  before   approximately  one   month. 
If   the   enemy  is    tied  up   at    other   points   simultaneous ly,   his    counter- 
measures  will  be   correspondingly  weaker.      The   problem  of   supplying 
the   pocket   battleships  will  not   present   any  particular  difficulties 
since   ample    experience   and  means   are   available.      However,    the 
conditions   for   the   breakthrough   and  return  have  become   more  difficult. 
The   good  chances   of  success   in   the   operations   area   compensate 
for   the   risk  involved. 

The  Naval  Staff   Operations   Division,    Operations   Branch  therefore 
suggests   that   the   SCKEER  operate   in    the    South  Atlantic  from  mid- 
November  lQl+2  to   end  of  March  I9U3 .      See   l/Skl  I   k/l    op  II45I4.A2 
Gkdos.   Chefs,   in  War  Diary,   Part  C,   Vol.  I. 

II.     Certain   difficulties   have   arisen  between  the  German   and 
Italian  Navies   concerning   the    courses   for   the  vessels    carrying 
home   Italian  citizens  from  East  Africa  in  connection  with  the 
minefields    laid  by  the    DOGGERbANK   on  the   Agulhas  bank.      Disregard 
of  the  German  wishes   concerning    these   courses  has    largely  contri- 
outed  to  promoting   the   British  plan  for   using   the  Italian   repatria- 
tion ships    indirectly  as   mine   sweepers.      For   copy  see   l/Skl  I   k 
II7I1/I4.2  Gkdos.   Chefs,   in  Y;ar  Diary,    Part   C,   Vol.   I.      The    telegrams 
sxchanged   on  this    subject  between   the  Germans   and  the   Italians 
Trom  Jl  Mar.   to  28   Jun.,   as  well  as   a  map,    are  appended. 

til.   The   Minister    of   Armament  and  Ya'ar   Production   reported  to   the 
Var  Economy  Branch   of   the   Naval   Ordnance   Division   that   during    the 
jonferences    on  2J,    2l\   and   25   Jul.    the   Fuehrer  declared  that, 
3ven  when   the    operations   in  the  East  are    successfully  concluded, 
production   of   Army  equipment   must   continue    on   the   same   footing 
as   that    of   the   Air  Force  because   future    operations    require   this. 

Cn  addition,    the  Fuehrer  has   decided  that    the   merchant    ships 
3cheduled  for  construction   should  be   equipped  with  derricks   that 
3an   lift   as   much  as   65   tons.      The  Fuehrer  will  not   compromise    on 
this   demand. 

IV.      In  the   conference  between  the  Naval   Staff   Submarine   Division, 
the  Naval  Construction  Division,    the  Executive   Office    of   the 
Commander   in   Chief,   Navy,    and  Mr.  Walter  concluded   on   16   Jul. 
it  was  decided  that  constructing   the  type  V  300   submarine  would 
not  provide   a   submarine    suited  for  the  Atlantic  any  sooner   than 
building  the    small  boats    type   VvA  201  now,   and  immediately  after- 
wards designing  a    large  boat.      This   large   boat,   designated  as 
V  3°1»   would  be   800   tons,   have  a    surface  range   of  7,000   to 
8,000  miles,    a   surface   speed   of   15  knots,   submerged   speed  of   26 
to  27  knots,   would  be   armed  with  J4.  tubes   at   the  bow,    and  carry 
16   torpedoes.      The  complete   design  would  take  about   li  months, 
after  which  it   would  have   to  be   decided .whether  to  build  such   a 
submarine.      According   to  Mr.   Walter,    2  WA  201   submarines   will  be 
completed  by   1  Sep.    19^3«     The  Navy  could  take   them  over    in   the 
spring   of    I9I4J4.. 


-89- 


CONE  IDENTIAL 
9   Aug.    19U2 

Situation  9   Aug.    19^2 

I.        Y<ar   in  foreign   '..aters 

1.  Enemy  Situation: 

In  the  afternoon  radio  intelligence  intercepted  2  QQQ 
messeges  from  the  British  steamer  DALHOUSIE  (7,022  GET)  reporting 
that  a  suspicious  vessel  fired  on  her  at  20°  S,25°  W. 

It  is  highly  probable  that  our  auxiliary  cruisers 
are  involved. 

According  to  an  Intelligence  report,  on  6  Aug.  at  I72O  an  aircraft 
carrier  was  proceeding  at  a  speed  of  approximately  20  knots  on  a 
northerly  course  I4.  miles  off  Port  Etienne  (French  West  Africa). 

Another  intelligence  report  states  that  on  5  Aug.  a  reliable  agent 
observed  5  British  warships  proceeding  northward  after  their  de- 
parture from  Funchal. 

According  to  the  same  report,  the  Irish  steamer  CITY  OP  DUBLIN 
loaded  2,000  barrels  of  fish  oil  in  Lisbon  supposedly  for 
Eire  but  actually  destined  for  England. 

The  Foreign  Office  reports  that  the  Portuguese  steamer  SAN  &HGT7EL 
is  scheduled  to  depart  from  Baltimore  at  1000. 

Independent  of  the  Foreign  Office  communication, 
the  Naval  Attache  informed  the  Portuguese  Govern- 
ment on  5  Aug.  about  the  safe  courses  in  the 
Chesapeake  Bay. 

2 .  Own  Situation : 

On  £  Aug.  at  2316  ship  "23"  reported  that  she  had 
transferred  her  operations  area  to  the  large  quadrant  FE.   She 
also  confirmed  by  a  "yes"  that  she  still  wants  the  2  Ar  I96 
planes  (see  Y.ar  Diary  29  Jul.).   The  Naval  Staff  confirmed 
the  message  via  Radiogram  0039» 

At  O3I7  ship  "28"  reported  meeting  ship  "23"  in  quadrant  GD  22* 
The  Naval  Staff  confirmed  the  message  via  Radiograms  0612  and 
1555.   In  the  latter,  the  Naval  Staff  states  that  it  assumes  that 
the  two  ships  coordinated  their  further  operations  and  are  now 
en  route  to  their  new  operations  areas. 

The  Naval  Staff  approves  the  transfer  of  the  operations varea 
into  large  quadrant  FE  as  reported  by  ship  "23",  assuming  that 
arrangements  were  made  with  ship  "28"  in  case  the  boundaries  of 
the  operations  area  are  crossed.   Ship  "23"  is  being  informed 
accordingly  via  Radiogram  lo22,  and  at  the  same  time  her  attention 
is  called  to  the  fact  that  the  submarine  operations  area  was  ex- 
tended until  16  Aug.,  and  that  German  submarines  are  at  present 
operating  in  that  area.   The  demand  for  .planes  will  be  examined. 
However,  it  is  no  longer  possible  to  send  the  planes  on  the 
auxiliary  supply  ship  PASSAT  assigned  to  ship  "23". 

Since  ship  "23"  failed  to  repeat  the  garbled  short  signal  as 
requested  in  Radiogram  1217  on  8  Aug.,  the  Naval  Staff  assumes 

-90- 


CONFIDENTIAL 
9  Aug.  19^2 

that  its  Interpretation  of  the  text  of  the  short  signal  (see 
War  Diary  £  Aug.)  was  correct  and  that  no  further  reply  is  to  be 
expected. 

Ships  "23"  and  "28"  are  notified  of  the  Q^Q  messages  sent  out 

by  the  steamer  DALHOUSIE  and  asked  which  of  the  two  auxiliary  cruisers 

was  involved  (see  Radiogram  2200). 

Via  Radiogram  2001  the  blockade -runner  UCKU'RMAKK  is  Informed 
about  ships,  the  names  of  which  could  be  used  for  camouflage  pur- 
poses. 

The  German  Naval  Command,  Italy  informs  the  Commanding  Admiral, 
Submarines  and  the  Air  Commander,  Atlantic  Coast,  with  copy  to 
the  Naval  Staff  Operations  Division,  about  the  positions  of  the 
Italian  repatriation  ships  ARCOLA  and  TAIGETE  on  8  Aug.  at  noon. 

Via  Radiogram  2157  all  vessels  in  foreign  waters  are  informed 
about  the  announcement  of  the  Japanese  Navy  of  7  Aug.  concerning 
the  successes  scored  in  the  engagement  between  the  Japanese  fleet 
and  the  Anglo-American  fleet  off  the  Solomon  Islands  on  7  Aug., 
as  well  as  about  enemy  convoy  movements  in  the  South  Atlantic 
during  June  and  July. 


II.   Situation  West  Area 

1.  Enemy • Si  tuat I  on ; 

4 

Air   reconnaissance   located   II4.   steamers    lying  in  The. 
Solent.      At   the   same   time    it   spotted   a  force    of   6   destroyers 
and  probably  a    light   cruiser    on  southerly  course    off   Selsey 
Bill.      8  to  10   steamers   were    observed  lying   off  Portland. 

2.  Own  Situation; 

Atlantic  Coast; 

3  ground  mines  were  swept  off  Lorient  and  in  the 
Gironde  estuary. 

Group  West  ordered  blockade-runner  UCKERMARK  to  depart  on  9  Aug. 

Channel  Coast; 

Torpedo  boat  T  "I)."  is  scheduled  to  transfer  from  St. 
L.alo  to  La  Pallice  during  the  night  of  9  Aug.   During  the  night 
of  8  Aug.  a  patrol  vessel  and  accompanying  forces  made  contact 
with  British  motor  gun  boats  off  Calais.   2  vessels  of  the 
harbor  defense  flotilla  of  Boulogne  took  part  in  the  engagement. 
Several  direct  hits  were  observed  on  the  enemy  vessels.   Our 
forces  were  missed  by  3  torpedoes. 

For  brief  report  of  the  harbor  defense  flotilla  of  Boulogne  and 
the  battle  report  of  the  2nd  Coast  Patrol  Force  see  Telegrams 
1715  and  19^5. 

In  the  afternoon  several  enemy  fighter  groups  flew  over  the  Belgian 


-91- 


confidential 

9  Aug.  l^lj.2 

and  Trench  coasts.   The  battery  "Schuette"  fired  on  30  Spitfires. 


Ill,  North  Sea,  Norway,  Arctic  Ocean 

1.  North   Sea: 

Energy  Situation: 

Air   reconnaissance   reports   that  in  the   evening    10  to 
15   steamers    arrived  at  Newcastle.      15   southeastbound  steamers 
were   sighted   off  Flamborough  Head. 

Own  Situation: 

1|  ground  mines  were    swept    off    the   Dutch  coast   and  in 
the   vicinity   of    the  Frisian  Islands.      Towing   attempts   were   unsuc- 
cessful  and  the   Swedish  steamer   SIGYS   s&nk  as    a   result    of    a  mine 
hit   off  Den  Helder.     The   transfer   of   the  catapult   ship  SCHV.AEENLAND 
from  Flushing   to    Rotterdam  is    completed.     In   the  afternoon  an 
enemy  plane   flew  a   reconnaissance   mission   over    the  German  Bight 
as   far  as   Kiel   and  returned  via  Esbjerg.      IZnemy  planes  yjsre  very 
active   in   the   area   of    the   Admiral,   Netherlands.      Naval   anti-air- 
craft  guns   shot   down   2  planes, 

2 .  Norway,   Arctic    Ocean: 

Bneny  Situation: 

According   to  intelligence   reports   from  Switzerland   sent 
in   the   beginning   and  toward   the  middle    of    July,    there   is   again 
talk    about  British   and  American      operations   planned  in   northern 
Norway.      On   the    other  hand,   no  commando  raids  will  be   undertaken 
in   the  west  area  for   the    time  being.      According   to  a   statement 
by  a   British   air  attache,    the  British  High  Command  wants   to  be 
firmly  established   in   northern  Norway  by   fall. 

Radio  intelligence   reports    that    2  British  vessels   were  between 
the   southern    outlet   of   the  Gorlo  Strait   and  Archangel.      Air 
reconnaissance   over  the  Arctic   Ocean  failed  to   yield  results. 

The  submarines   have   so   far   likewise  failed   to   reestatlish  contact 
with  convoy  P^  18. 

Own   Situation: 

Artillery  fire   directed  from  the   Rybachi    Peninsula  against 
a  picket  boat    on  7  Aug.  was   ineffective.      On  the  afternoon   of  o  Aug. 
an  enemy  submarine   unsuccessfully  attacked  a  westbound  convoy  with 
2   torpedoes,      uecause    of   poor  visibility,    the  Naval   Shore   Coomand 
Kristiansand  South   ordered  a  first-degree   alert  for   its   area.     The 
patrol  vessel   TAIFUN   sank   off   Lerwik  as   a  result    of    a   collision 
with  a  Norwegian   steamer. 

Group  North  ordered  execution   of    operation   "Eiche"   for    10  Aug. 

Vsith  regard  to  convoy  P^  18,   Group  North  fully  approves   the   measures 
taken  by  the   Admiral,   Arctic   Ocean  for   submarine   attacks.     Group 
North   is    entirely  convinced   that   the    observations   by  submarine 

-92- 


CONFIDENTIAL 


9    Aug.    19i|2 


U  "i|05",  which  are  the  only  evidence  so  far  that  convoy  P^  16 
is  en  route,  are  correct.  Unless  further  sighting  reports 
are  received,  Group  North  recommends  that  the  patrol  line  be 
gradually  shifted  toward  the  east. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

A  Finnish  report  states  that  I4.  Russian  destroyers  are 
in  Kronstadt  ready  for  action. 

2.  Own   Situation: 

In  the  area  of  the  Commanding  Admiral,  Defenses,  Baltic 
Sea  a  total  of  3  ground  mines  were  swept  west  of  Samsoe  and  off 
Schleimuende.  All  other  operations  proceeded  according  to  plan. 

In  the  area  of  the  Commander,  Mine  Sweepers,  Baltic  Sea,  submarine 
patrol,  mine-sweeping,  and  convoy  operations  proceeied  as  scheduled, 
with  no  incidents  to  report. 

For  attempts  on  the  part  of  Group  North  to  have  the  Admiral, 
Amphibious  Forces  furnish  3  heavy  guncarriers  for  the  Commander, 
Mine  Sweepers,  Baltic  Sea  without  being  given  the  requested  motor 
mine  sweepers  as  replacements  see  Telegrams  12^5  and  2136. 

The  Naval  Staff  Quartermaster  Division  has -taken 
up  the  matter. 

For  orders  by  the  Ministry  of  Transportation  concerning  compulsory 
escort  for  ships  carrying  personnel  on  leave  see  Telegram  1325* 


V.    Submarine  V.arfnre 

1.   Enemy  Situation: 

Reconnaissance  in  the  North  Atlantic  reported  the  presence 
of  submarines  3OQ  miles  south  of  Reykjanes  and  3?0  miles  west  of 
Rockall  Bank.   British  vessels  were  sighted  180  miles  northwest 
of  Porcupine  Bank  and  ISO  miles  northwest  of  the  northern  outlet 
of  the  North  Channel.   Reconnaissance  activity  in  the  southern 
rendezvous  area  was  particularly  lively  in  the  Bay  of  Biscay.   1 
submarine  was  attacked  I50  miles  northwest  of  Cape  Villano  and  is 
presumed  to  have  been  hit  twice. 

Another  submarine  was  sighted  proceeding  on  a  westerly  course 
200  miles  north  of  Cape  Ortegal.   Half  an  hour  later  a  British 
vessel  was  located  in  the  same  area. 

According  to  an  Italian  report  from  an  allegedly  reliable  source, 
on  1  Aug.  a  large  convoy  of  5  passenger  steamers  and  20  freighters 
under  heavy  escort  consisting  of  1  aircraft  carrier,  presumably 
of  the  ILLUSTRIOUS  class,  5  cruisers,  and  12  destroyers,  with 


-93- 


CONFIDENTIAL 


9   Aug.    191+2 


25,000  men  aboard,   departed.  irom  Freetown  for  Egypt. 

In   addition   to  several   submarine  sighting   reports    off   the   American 
east   coast  and  in   the  '.Vest  Indies    area,    reports    about   submarine 
attacks  were   intercepted  from  the   area  northeast   of  Georgetown. 

2.        Own   Situation; 

No  incidents    of  importance    occurred  in  the   Arctic   Ocean. 

In   the  North  Atlantic,    submarine  D    "]i+6"    sank  an   Immobile   7,000 
CRT   steamer  from  the   convoy  in   quadrant  AK.      Submarine  U   "595" 
probably  torpedoed  a  destroyer.      After  2000,    strong   enemy  air 
escort  broke    off   the   contact  between  the   submarine  and  the   convoy. 
The    operation   is  being  continued. 


*o 


From  the  American  coast,    submarine  U   "09"   reports   execution   of 
the  mine    operation   off   Jacksonville  according   to  plan.     For   the 
time  being,    the  submarine    tanker  U   "I+63"   is    supplying  the    sub- 
marines  as   planned. 

Submarines   in   the  West  Indies   area  were   informed  that  Georgetown 
is   probably  a   refuelling   station  for  convoys   running  between  New 
York  and  Freetown.      Of   the   submarines  'operating   in  the   South 
Atlantic,    submarine   U    "I30"   reported  sinking   the    tanker   MALMANGER 
(7,07g  GET)    in   quadrant   ES   51J+J+. 

Of   the    3   submarines   sent   Into    action   in  the  western   Mediterranean 
according  to  a  Naval  Staff   directive,    submarine  U    "331"   must  be 
withdrawn   to   Spezia   on  account    of   damage  from  aircraft  bombs. 
Submarines  U    "73"   and    "205"  were    ordered  to    occupy  the   northern 
and   southern  halves    of   quadrant   CH  $1, 

For  further  details   see   supplement   to  submarine    situation  In  War 
Diary,    Part  B,   Vol.   IV. 

3«        Special  Items; 

a.  The   directive   concerning   submarine      attacks    on 
route   "Anton"    (see  War   Diary  6  Aug.)   has  been  changed   on   account 
of   the   departure   of   the  UCKERIvIARK  to  the   effect   that   attacks   are 
prohibited  north   of  20°  N  effective   immediately,   and  south  of   20°  N 
effective    on   ll+   Aug.      The   Commanding   Admiral,    Submarines  and  Group 
West  are   requested  to  take   the   necessary  measures    (see  Telegram 
I63D 

b.  The   measures    stipulated  by  the   Naval   Staff   in   agree- 
ment  with  Group  West  and   the   Commanding  Admiral,   Submarines   for 
protecting    in   and  outbound  blockade-runners   are  for   the   first 

time  being  applied  for   the  departure    of  the  UCKFRMARK,     In  and 
outbound  submarines   are    ordered  to  keep  track   of    the   route   of   the 
blockade-runner   in   order  to  be    ready  to  render   immediate   aid   if 
necessary. 


c 


-94- 


CONFIDENTIAL 
9  Aug.  19)4.2 

VI.   Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

During  the  day,  fighter -bomber  attacks  were  made  on  the 
coastal  area  of  England,  in  addition  to  reconnaissance  missions. 
On  the  night  of  9  Aug.  a  considerable  number  of  planes  raided 
Brighton,  and  a  few  planes  attacked  industrial  targets. 

On  the  night  of  9  Aug.  there  were  li|0  to  160  enemy  incursions, 
80  to  100  of  them  into  Reich  territory,  concentrating  on  Osnabrueck. 
5  planes  were  shot  down.   For  an  account  of  the  considerable  damage 
see  daily  situation  report.   On  the  evening  of  9  Aug.  enemy  planes 
attacked  the  Duesseldorf  area  without  causing  any  particular  damage. 

2.  Mediterranean  Theater: 

A  major  attack  was  carried  out  on  enemy  strongpoints 
in  the  ^attara  Depression.   At  the  central  sector  of  the  front  the 
Panzer  Army  was  relieved  by  fighter -bomber  raids  on  enemy  motor 
vehicle  concentrations.  Free-lance  fighter  patrols,  reconnaissance, 
and  harbor  defense  missions  failed  to  yield  results.   Fighter  thrusts 
against  Malta  were  also  unsuccessful.  For  reconnaissance  results 
from  the  eastern  Mediterranean  see  Enemy  Situation,  Mediterranean. 

3»   Eastern  Front: 

The  Black  Sea  and  Sea  of  Azov  harbors  were  thoroughly 
reconnoitered.  ,  During  the  air  raid  on  Tuapse  one  i|.,000  GRT  steamer 
was  sunk  and  2  small  steamers  were  damaged. 

In  the  Arctic  area,  bombs  were  dropped  with  observed  effect  on 
enemy  assembly  positions  at  the  Kandalaksha  sector. 


VII.  Warfare  in  the  Mediterranean  and  Black  Sea 

1.   Enemy  Situation,  Mediterranean: 

According  to  an  intelligence  report  from  Spain,  lively 
westbound  traffic  was  observed  in  the  Strait  of  Gibraltar  on  the 
night  of  8  Aug.  A  large  vessel,  either  an  aircraft  carrier  or  a 
transport,  is  assumed  to  be  among  the  ships.   On  the  same  night 
several  vessels  are. reported  to  have  entered  and  6  to  have  left 
Gibraltar.   In  the  morning,  the  number  of  ships  in  the  harbor 
was  approximately  the  same  as  before.   In  the  afternoon  3  destroyers 
arrived  from  the  west.   An  Italian  source  reports  that  on  the 
night  of  9  Aug.  some  2I4.  vessels,  with  their  lights  dimmed,  entered 
the  Strait  of  Gibraltar  from  the  west. 

The  number  of  ships  in  Valletta  was  unchanged.   Photographs  of 
harbors  in  the  eastern  Mediterranean  also  failed  to  show  anything 
unusual.  A  few  merchant  vessels  were  observed  moving  through 
the  Suez  Canal. 

1  cruiser  of  the  SOUTHAMPTON  class,  5  destroyers,  1  repair  ship, 
1  passenger  steamer,  32  steamers,  and  Ij.  tankers  were  sighted  in 

-95- 


CONFIDENTIAL 
9  Aug.  19U2 

the  Suez  roadstead.   Air  reconnaissance  observed  lively  submarine 
activity  in  the  whole  Mediterranean  area. 

2.  ,  Own  Situation,  Mediterranean; 

1 

During  the  night  of  7  Aug.  enemy  planes  raided  Tobruk 
and*Karsa  Matruh  without  causing  any  damage.   During  the  night 
of  8  Aug.  aerial  mines  were  dropped  in  Marsa  Matruh.  2  undamaged 
mines  of  an  unknown  type  were  recovered.   Since  the  mines  might 
be  equipped  with  combined  magnetic  and  acoustic  firing  devices, 
it  was  requested  that  an  expert  be  sent  to  examine  them.   The 
Mine-Laying  Experimental  Command  will  take  the  necessary  steps. 

On  7  and  8  Aug.  submarines  unsuccessfully  attacked  the  steamer 

ISTRIA  with  torpedoes  in  a  convoy  en  route  from  Benghazi  to 

Navarino,  and  the  unescorted  steamer  AMBA  ALAGI  off  the  Canary 

Islands.  In  the  night  of  8  Aug.  one  of  the  submarines  fired  on 

a  coastal  railway  in  the  Canary  Islands.  Italian  subchasers 

have  been  sent  into  action.  During  the  enemy  air  raid. on  Benghazi 

on  9  Aug.  the  steamers  GIULIANA  and  OSTIA,  as  well  as  the  quay,  * 

suffered  damage.  1 

3.  Transport  of  Supplies  to  North  Africa; 

Transport  operations  proceeded  as  planned  without  any 
incidents. 

I|.#   Area  Naval  Group  South; 

Aegean  Sea; 

1  submarine  was  observed  east  of  Naxos  and  another 
one  north  of  Crete.  'Submarine  chase,  which  so  far  has  been 
unsuccessful,  is  being  continued. 

The  ban  on  Spanish  and  Turkish  shipping  was  lifted  for  escorted 
convoys  effective  immediately  and  for  ships  not  carrying  troops 
effective  11  Aug.  The  ban  in  the  Aegean  Sea  continues  in  force 
for  troop  transports  and  unescorted  small  vessels. 

Black  Sea; 

Enemy  Situation; 

Reconnaissance  of  harbors  in  the  Black  Sea  and  the  Sea 
of  Azov,  as  well  as  in  the  Caspian  Sea  and  on  the  Volga  River, 
failed  to  yield  results.  I4J4.  lighters,  8  tugs,  and  12  paddle  steamers, 
as  well  as  2  ferries,  were  spotted  in  Stalingrad.  A  southbound 
convoy  was  observed  north  of  Tuapse. 

Own  Situation; 

The  1st  PT  Boat  Flotilla  operating  some  15  miles 
southeast  of  Tuapse  during  the  night  of  8  Aug.  failed  to  sight 
any  suitable  targets.   Only  patrol  vessel  and  subchaser  operations 
were  observed.   On  its  way  back,  the  flotilla  dropped  depth  charges 
against  a  submarine  some  60  miles  south  of  the  Kerch  Strait  with- 
out being  able  to  observe  the  effect.   Motor  mine  sweepers  have 
checked  the  outward  route  from  Ivanbaba.  The  last  3  landing  craft 


-96- 


CONFIDENTIAL 
9   Aug.    loi+2 

are   to  be  escorted  through  the  Kerch  Strait  into   the   Sea   of  Azov 
by   3  motor  mine   sweepers   with  air   support    in   the   night    of  9   Aug. 
An  Italian  subchaser  group  will  be   stationed  south   of   Cape  Opuk 
for  protection.      On  the   same   night,    1  force    of  2   PT  boats    is 
being   sent   into   action  against   Russian   ship  movements-  along   the 
Caucasian   coast    off  Novorossisk  and  another   one   against   vessels 
off   Tuapse.      On   8  Aug.   the  Admiral,   Black  Sea   transferred  his 
headquarters   from  Kerch  back  to   lvanbaba.      Mine-sweeping   and    - 
convoy   operations    proceeded  according   to  plan  without   incidents. 


VIII. Situation  East  Asia 

The   Japanese  Naval  Attache    reports    that' on  7  Aug.    the   Japanese 
fleet  again  attacked  the  Anglo-American  fleet   in  the   Solomon  Islands 
area. 

The   following   ships  were    sunk: 

1  battleship  (class  unknown) 

2  heavy  cruisers  (ASTORIA  class) 

2  heavy  cruisers  (AUSTRALIA  class) 
more  than  3  light  cruisers 

more  than  4  destroyers 
more  than  10  transports. 

The  following  ships  were  damaged; 

3  heavy  cruisers  (MINNEAPOLIS  class) 
more  than  2  destroyers 

more  than  1  transport. 

The  Air  Force  shot  down; 

more  than  32  enemy  fighters 
more  than  9  fighter-bombers. 

Japanese  losses; 

7  planes  destroyed 

2  cruisers  damaged  (still  maneuverable) . 

No  further  news  has  been  received  since.   The  German  Admiral 
in  Tokyo  has  not  yet  reported  on  this  battle. 

Enemy  reports  on  the  engagement  are  not  yet  available.   The 
Communication  from  the  Japanese  Naval  Attache  was  transmitted 
to  the  Naval  Representative  of  the  Armed  Forces  High  Command 
Operations  Staff  and  to  the  Naval  Liaison  Officer  with  the  Army 
High  Command. 


-97- 


CONFIDENTIAL 
9   Aug.    I9I4.2 

IX.      Army  Situation 

1.  Russian  Front ; 

Army  Group  A; 

After  a  brief  fight,  Rumanian  troops  occupied  Yeisk.' 
After  crossing  the  enemy's  anti-tank  ditch,  our  troops  took  the 
western  part  of  the  city  of  Krasnodar!   Other  Army  forces  pene- 
trated into  the  town  from  the  east  ana  the  north,  and  towrrd  noon 
the  town  was  in  our  possession.   In  the  afternoon,  the  13th  Panzer 
Division  launched  an  attack  on  i.iaikop  and  penetrated  into  the 
city  during  the  evening.   South  of  Maikop  other  troops  are  advancing 
westward  toward  the  Byelaya  River.   Parts  of  a  panzer  division 
pushing  southeast  have  reached  the  area  north  of  Essentuki.   Our 
forces  crossed  the  undamaged  bridge  north  of  Pyatigorsk.  The 
Kuma  River  has  been  reached.   The  divisions  advancing  from  Salsk 
in  easterly  direction  reached  Klayevka  and  Kopanski . 

Army  Group  B; 

1 

On  the  southern  Wing  of  the  Army  Group,  parts  of  a 
division  are  engaged  in  a  fight  against  weak  enemy  forces  near 
Sirotski  on  the  Sal  River.   South  of  Stalingrad,  new  forces 
brought  up  by  the  enemy  are  putting  up  a  stiff  defense  against 
the  German  and  Rumanian  units  advancing  from  the  south.  Desperate 
attempts  by  the  enemy  to  break  out  of  the  pocket  west  of  Kalach 
were  repulsed.   The  situation  at  the  Italian  division  has  been 
restored  through  intervention  of  tfre  22nd  Panzer  Division.  East 
of  Svoboda,  the  Russians  succeeded  in  reaching  the  western  bank 
of  the  Don  River  and  pushing  back  the  Hungarian  forces.   Enemy 
pressure  north  of  Voronezh  continues. 

Central  Army  Group; 

All  attacks  by  constantly  reinforced  enemy  troops  aiming 
at  an  extension  of  the  point  of  penetration  near  Rzhev  were  re- 
pulsed. Enemy  attacks  north  of  Rzhev  and  southwest  of  Byeloi  were 
likewise  repulsed. 

Northern  Army  Group: 

Enemy  attacks  on  the  land  bridge  from  the  north  and  the 
south  were  beaten  off.  Brisk  combat  activity  is  reported  south 
of  Soltsy. 

2.  Finnish  Front r 

An  enemy  attack  north  of  Leningrad  was  repulsed.  In 
the  Ukhta  area,  forest  fires  caused  by  our  incendiary  shells 
destroyed  enemy  positions  and  minefields.   On  the  northeastern 
front,  an  enemy  attack  north  of  Alakurtti  was  repulsed, 

3.  ^;orth  Africa: 

Some  patrol,  artillery,  and  plane  activity  is  reported. 


-98- 


CONFIDENTIAL 
10  Aug.  1942 

Items  of,  Political  Importance 

The  Allied  conferences  in  Moscow  are  being  widely  discussed.  Authentic 
reports,  however,  are  not  available.  The  U.S.  Ambassador  in  Ankara  has* 
denied  the  reports  about  his  trip  to  Moscow. 

Great  Britain; 

Labour  Minister  Bevin  has  called  upon  workers  in  the  building  industry 
to  erect  huge  camps  and  depots  for  the  American  ground  and  air  forces, 
airfields,  and  harbor  installations.  This  project  is  to  have  priority 
over  all  public  and  municipal  projects. 

The  Irish  Times  estimates  the  tonnage  needed  for  an  invasion  of  the  Con- 
tinent at  2,000,000  tons  which,  however,  are  not  available  for  this  pur- 
pose. The  greatest  problem  is  that  of  air  superiority.  Sooner  or  later, 
a  second  front  will  be  established. 

Noted  British  and  American  newspapers  deplore  the  lack  of  a  unified 
high  command  for  the'  West,  which  results  in  a  lack  of  the  necessary  co- 
ordination both  in  armament  and  strategy. 

Concerning  the  shipping  problem,  the  Dally  Mirror  states  that  the  Allies 
share  Admiral  Pricke's  opinion  that  the  battle  on  the  seven  seas  will 
be  the  most  decisive  one  of  the  war;  the  Allies  are  unfortunately  not 
acting  accordingly.   To  counter  German  submarines  only  by  building  new 
ships  is  the  equivalent  of  providing  the  submarines  with  "sure  prey". 
A  special  article  by  Crumley  in  the  Dally  Express  takes  a  very  serious 
view  of  the  shipping  crisis.   The  Allied  tonnage  deficit  already  amounts 
to  12,000,000  tons.  Any  hopes  for  eliminating  the  submarine  menace  are 
generally  considered  madness. 

These  pessimistic  statements  must  be  taken  with  a  grain 
of  salt.  They  consciously  serve  the  purpose  of  mobiliz- 
ing all  forces  for  defense.  Undoubtedly,  the  authorit- 
ative Allied  circles  have  never  ceased  to  believe  that 
danger  arising  from  the  critical  shipping  situation  can 
be  overcome. 

India; 

The  leader  of  the  Moslems  Issued  a  declaration  condemning  the  Congress 
resolution  and  called  upon  his  followers  to  stay  out  of  any  mass  move- 
ment. 

The  domestic  situation  in  India  as  such  is  not  necessarily 
confronting  the  British  with  an  insoluble  problem,  seeing 
that  they  have  sufficient  military  and  political  forces 
at  their  disposal  to  retain  control  of  the  situation. 
Only  the  incalculable  consequences  which  would  follow 
active  intervention  by  Japan  make  the  present  develop- 
ments appear  more  critical  than  ever  before. 

Turkey; 

A  French  source  reports  that  the  Turco-Syrian  frontier,  which  was  closed 
on  7  Aug.,  has  been  reopened. 

A  report  from  a  Bulgarian  source  states  that  the  British  and  U.S.  Am- 
bassadors in  Ankara  have  undertaken  certain  steps  with  the  Turkish  Govern- 
ment with  regard  to  the  Russian  fleet  in  the  Black  Sea. 


-99- 


CONFIDENTIAL 
10  Aug.  1942 


Uruguay ; 

The  Urugi 
test  aga: 
retaliatory  measures, 


The  Uruguayan  Government  has  lodged  with  the  German  Government  a  pro- 
test against  the  sinking  of  the  steamer  MALDONADO  and  has  announced 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  The  Italian  Admiral  at  the  Naval  Staff  communicates  that  in  case 
of  an  alarm  the  Italians  intend  to  lay  mines  with  timing  device  set 
for  48  hours  in  the  French  territorial  waters  off  Cape  Bon.  The  Naval 
Staff  welcomes  this  intention  but  will  suggest  to  the  Italian  Admiralty 
that  the  mines  be  set  for  a  longer  period  than  48  hours. 

II.  The  African  Panzer  Army  has  been  placed  directly  under  the  Italian 
High  Command.   Thus  it  is  no  longer,  as  heretofore,  under  the  Italian 
Commander  in  Chief  of  the  African  Forces,  General  Bastico,  who  has  been 
promoted  to  the  rank  of  Marshal  of  Italy. 

III.  The  Naval  Liaison  Officer  to  the  Air  Force  Operations  Staff  re- 
ports as  follows: 

1.  The  regulation  according  to  which  plane  crews  are  to  be 
awarded  bonuses  payable  after  the  war  for  sinking  large  warships  is 
still  in  force. 

2.  All  airfields  situated  near  the  coast  in  the  west  area  are 
to  be  developed  as  bases. 

3.  Daylight  raids  on  the  Reich  area  are  made  from  very  high 
altitudes  (6,000  to  .10,000  meters).   At  such  altitudes,  planes  can  be 
located  practically  only  by  instruments,  seldom  by  sound,  and  never  by 
sight. 

The  Air  Force  Operations  Staff  believes  that  the  heavy  air  raids 
carried  out  by  the  enemy  at  night  and  the  nuisance  raids  made  during 
the  daytime  are  tying  up  his  forces  to  a  very  large  extent.  The  fact 
that  heavy  raids  are  being  made  on  the  Reich  area  lead,  therefore,  to 
the  conclusion  that  simultaneous  landing  operations  are  not  intended. 

15  of  the  60  German  bombers  which  flew  over  Birmingham  on  the  night 
of  29  Jul.  were  lost.  The  crews  withdrawn  from  the  East  are  not  yet 
adequately  trained  for  attacks  on  the  interior  of  England.   The  air 
raids  on  Birmingham  have  so  far  resulted  in  the  loss  of  an  entire 
bomber  group. 

4.  On  4  Aug.,  effective  immediately,  the  2nd  Group  of  the  26th 
Bomber  Wing  (torpedo  planes)  was  transferred  from  western  France  to 
the  area  of  northern  Norway  for  an  attack  on  convoy  PQ  18.   The  Air 
Force  Operations  Staff  presumes  that  in  case  of  poor  visibility  the 
British  will  use  parts  of  their  bomber  formations  for  dropping  aerial 
mines. 

IV.  The  Italian  Admiral  at  the  Naval  Staff  requested  authoriza- 
tion for  his  inspection  tour  of  the  Norwegian  bases  and  defense  in- 
stallations.  The  Naval  Staff  has  set  up  a  schedule  for  a  9  day  tour 
beginning  on  21  Aug.   It  is  planned  to  make  available  a  warship  for 
the  voyage  from  Trondheim  to  Narvik.   The  Chief,  Naval  Staff  agrees. 

-100- 


CONFIDENTIAL 


10  Aug.  1942 


V.  The  Chief,  Naval  Staff  Communications  Division  reports  on  anti- 
radar  devices  to  be  used  on  submarines  and  PT  boats  operating  in  the 
Channel.   The  Chief,  Naval  Staff  Quartermaster  Division  will  demon- 
strate these  devices,  as  well  as  the  radar  decoy  balloons,  to  the 
Fuehrer  some  time  soon. 

VI.  The  Chief,  Naval  Intelligence  Division  reports  on  rumors  con- 
cerning the  Russian  Black  Sea  Fleet,  which  are  suddently  appearing. 
His  advice  is  to  distrust  the  rumors  to  the  effect  that  the  Russian 
fleet  is  giving  up. 

In  a  Very  Restricted  Circlet 

VII.  Report  by  the  Chief,  Operations  Branch,  Naval  Staff  Operations 
Division: 

1.  Fog  in  the  Arctic  Ocean  has  so  far  prevented  our  forces 
from  reestablishing  contact  with  convoy  FQ  18.   The  data  reported  by 
submarine  U  "405"  cannot  be  doubted.   Group  North  considers  it  un- 
likely that  convoy  PQ  18  has  already  passed  through  the  longitude  of 
Spitsbergen.   Both  the  Naval  Staff  and  Group  North  consider  It  un- 
likely that  the  submarine  might  have  sighted  a  decoy  convoy.   Most 
probably  the  convoy  was  badly 'delayed  by  the  fog.   Group  North  con- 
siders it  very  likely  that  the  convoy  will  pass  through  the  HInlopen 
Strait  and  the  Olga  Strait.   The  Group  asked  the  5th  Air  Force  to 
carry  out  the  necessary  reconnaissance  and  patrol  operations.   The 
Increased  number  of  radio  messages  exchanged  between  Archangel  and 
Murmansk  may  indicate  the  departure  of  the  QP  convoy. 

Following  up  a  telephone  conversation  between  the  Chief  of  Staff,  Na- 
val Staff  and  the  Commanding  Admiral,  Group  North,  the  latter  asked 
that  the  following  operation  undrr  the  command  of  the  Admiral,  Arctic 
Ocean,,  be  considered,  in  case  convoy  PQ  18  is  located  east  of  Bear 
Island  within  the  range  of  our  destroyers,  and  no  definite  informa- 
tion about  the  positions  of  its  heavy  escort  forces  is  available: 

a.  The  HIPPER  and  the  SCHEER,  together  with  approximately  5 
destroyers,  would  make  a  thrust  through  the  North  Cape  area  in  north- 
easterly to  easterly  direction. 

b.  The  SCHEER  would  then  be  dispatched  around  in  back  of  the 
convoy  for  operation  "Wunderland". 

c.  The  HIPPER,  together  with  the  destroyers,  would  search  for 
convoy  PQ  18  and  attack  it  in  the  right  half  of  large  quadrant  AC, 
avoiding  any  serious  engagement  if  possible.   The  ships  would  then 
return  to  northern  Norway.   The  TIRPITZ,  the  KOELN,  and  2  destroyers 
would  remain  In  Narvik  ready  for  action. 

2.  Re:   Operation  by  the  SCHEER  in  the  Kara  Sea. 

On  the  basis  of  the  evaluation  of  the  Russian  direction- 
finding  service  in  the  Kara  Sea,  Group  North  directed  the  Admiral, 
Arctic  Ocean  on  2  Aug.  to  start  the  first  part  of  the  operation  in 
the  eastern  Barents  Sea  and  in  the  Kara  Sea 'as  soon  as  possible.  The 
second  part  is  scheduled  to  be  executed  after  the  operation  against 
convoy  PQ  18.   The  code  name  for  the  SCHEER  mission  is  "Wunderland". 
On  7  Aug.  Group  North  communicated  to  the  Admiral,  Arctic  Ocean  the 
information  from  the  Naval  Staff  about  the  Russian  convoy  from 
Petropavlovsk  which  is  expected  to  arrive  in  the  Kara  Sea  toward  the 


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CONFIDENTIAL 
10  Aug.  1942 

middle  of  August.   The  date  for  operation  "Wunderland"  depends  on 
the  operation  against  convoy  PQ  18  and  on  the  enemy  situation  in 
general.   Efforts  should  be  made  to  execute  the  operation  at  a  time 
when  the  traffic  on  the  northern  route  and  in  the  Kara  Sea  is 
assumed  to  be  at  its  heaviest.  For  this  reason,  if  operation 
"Eispalast"  is  carried  out  provision  should  be  made  for  sending  the 
SCHEER  directly  from  the  operations  area.   If  operation  "Eispalast" 
is  not  carried  out,  it  is  planned  to  send  the  SCHEER  as  soon  as  this 
becomes  evident  and  a  clear  picture  of  the  enemy  forces  is  available. 
The  special  steam  trawlers  will  not  participate  in  the  operation. 
The  Admiral,  Arctic  Ocean  is  to  return  them  at  once  to  the  Command- 
ing Admiral,  Norway.   Instead,  submarines  are  to  be  stationed  at  the 
western  outlet  of  the  Matochkln  Shar  and  the  Kara  Strait,  if  neces- 
sary also  the  Yugor  Strait  and  the  northern  tip  of  Novaya  Zemlya  by 
15  Aug.,  if  the  situation  with  regard  to  convoy  PQ  18  is  such  that 
the  necessary  submarines  can  be  spared. 

The  SCHEER' s  main  task  is  to  attack  enemy  ships  in  the  Kara  Sea.  If 
necessary,  the  cruiser  should  withdraw  to  the  west  and  to  the 
northern  route  until  worthwhile  attack  targets  have  been  reported. 
The  entire  operation  is  to  take  10  to  12  days.   Unless  some  worth- 
while target  appears,  the  attacks  are  to  be  directed  against  ships 
moving  through  the  northern  route  and  the  Yugor  Strait  toward  the 
harbors  of  eastern  and  northern  Siberia.  These  attacks  should  in- 
clude destruction  of  the  harbor  installations  in  Amderma  by  gunfire 
and  annihilation  of  any  fishing  flotillas  met  en  route.   The  captain 
of  the  cruiser  is  free  to  extend  the  operation  as  far  as  the  Yenisei 
estuary. 

The  moment  the  enemy  notices  the  SCHEER,  the  operation  should  be 
stopped  and  the  SCHEER  should  turn  back  at  top  speed.  The  restric- 
tions included  in  the  orders  for  operation  "Roesselsprung"  apply  also 
to  the  operation  by  the  SCHEER.   The  operational  command  rests  with 
the  Admiral,  Arctic  Ocean,  the  tactical  command  with  the  captain  of 
the  SCHEER.   Operation  "Wunderland"  is  to  be  started  after  consulta- 
tion with  Group  North.   The  same  applies  to  air  reconnaissance  and 
patrol.   The  Admiral,  Arctic  Ocean  will  take  care  of  the  fighter 
protection  and  close  escort  on  the  way  to  and  from  the  operations 
area.   Group  North  has  requested  the  5th  Air  Force  to  comply  with  the 
requests  of  the  Admiral,  Arctic  Ocean  to  the  greatest  possible  ex- 
tent. 

3.  A  further  report  by  the  Chief,  Operations  Branch,  Naval 
Staff  Operations  Division  deals  with  plans  for  a  submarine  opera- 
tion off  Capetown  as  recorded  in  War  Diary  7  Aug. 

The  Chief,  Naval  Staff  expresses  his  agreement  and  orders  that  the 
necessity  to  observe  complete  radio  silence  be  explicitly  mentioned. 

4.  For  the  report  by  the  Chief,  Operations  Branch,  Naval 
Staff  Operations  Division  concerning  the  rendezvous  of  the  auxiliary 
cruisers  n23"  and  "28"  see  War  Diary  8  and  9  Aug. 

The  Chief,  Naval  Staff  agrees  with  the  Naval  Staff's  proposal  to 
award  decorations  to  the  prize  crews  of  the  auxiliary  cruisers  as 
mentioned  in  Radiogram  1954  to  ship  "10". 


-102- 


CONFIDENTIAL 
10  Aug.  1942 

VIII.  Palling  to  recognize  the  actual  conditions,  the  command  of  the 
African  Panzer  Army  informed  the  Armed  Forces  High  Command  Operations 
Staff  that  the  daily  unloading  rate  in  Tobruk  is  insufficient,  imply- 
ing that  the  Navy  is  to  be  blamed  for  this  situation.   As  suggested 
by-th»  Naval  Representative  on  the  Armed  Forces  High  Command  Opera- 
tions Staff,  the  Operations  Staff  rejected  the  accusation  as  unjusti- 
fied. Actually,  the  tonnage  unloaded  in  Tobruk  exceeds  all  figures 
ever  reached  before,  and  this  fact  is  due  entirely  to  the  energetic 
intervention  of  the  German  Naval  Command,  Italy. 

IX.  Commander  Junge  made  a  detailed  report  on  his  official  trip  to 
the  Black  Sea  area  which  he  had  undertaken  on  orders  from  the  Armed 
Forces  High  Command  Operations  Staff.  He  describes*  in  particular, 
the  unsatisfactory  conditions  in  the  Nikolayev  shipyard  which  call 
for  immediate  relief.  The  present  production  of  this  shipyard  is 
absolutely  inadequate,  due  to  lack  of  proper  organization  and  person- 
nel. The  effect  will  make  itself  felt  very  keenly  once  the  shortage 
of  tonnage  in  the  Black  Sea  becomes  manifest,  and  the  Navy  alone  will 
be  blamed.  .    • 

In  this  connection,  the  Chief,  Naval  Construction  Division  reports 
that  because  of  this  risk  for  the  Navy,  which  he  too  anticipates,  a 
binding  agreement  was  concluded  with  the  Reich  Commissioner  of  Mari- 
time Shipping  and  ;with  Staatsrat  Blohm  just  2  days  ago,  to  the 
effect  that  the  management  of  the  shipyard  is  to  be  transferred  to 
the  Hermann  Goering  Werke,  which  will  send  a  new  director  there. 
Since  this  measure  does  not  suffice  to  make  clear  where  the  respon- 
sibility actually  lies,  the  Commander  in  Chief,  Navy  orders,  in  addi- 
tion, that  the  Navy  completely  withdraw  from  the  management  of  the 
shipyard;  at  the  same  time  guarantees  must  be  provided  that  the  * 
orders  which  the  Navy  places  there  are  filled.   In  spite  of  the  exist' 
ing  contract  which  safeguards  the  Navy's  property  rights,  the  Chief, 
Naval  Construction  Division  suggests  that  the  shipyard  control  staff 
be  dissolved  and  a  group  of  energetic  inspectors  be  considered  suf- 
ficient.  In  any  case  construction  and  repair  work  for  the  Navy  in 
progress  at  the  present  time  (6  war  transports,  3  subchasers,  and 
the  remaining  vessels  of  the  landing  craft  construction  program)  will 
be  completed.  Emphasizing  the  responsibility  which  the  Navy  still 
bears  for  supplying  the  war  transports,  the  Commander  in  Chief,  Navy 
gives  his  approval  to  the  above  proposal. 

Unfortunately,  the  other  alternative  for  overcoming  the  existing 
difficulties,  namely  a  thorough  sifting  of  the  personnel,  which  for 
obvious  reasons  would  be  preferable  to  the  Navy,  is  impracticable 
because  of  the  deplorable  shortage  of  qualified  personnel. 

In  order  to  have  this  problem,  as  well  as  the  related  questions  dis- 
cussed by  Commander  Junge,  settled  on  the  spot,  the  Commander  in 
Chief,  Navy  orders  that  the  Chief  of  the  Shipyard  Branch,  Naval  Con- 
struction Division,  Rear  Admiral  Kleikamp,  be  sent  immediately  to 
Novorossisk  and  the  Crimea. 


Special  Items: 

I.   On  10  Aug.  the  Commander  in  Chief,  Navy  approved  Group  North's 
request  for  placing  the  Admiral,  Arctic  Ocean  under  its  command 
effective  immediately, 

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CONFIDENTIAL 
10  Aug.  1942 

The  Chief,  Naval  Staff  Quartermaster  Division  approves  the  draft  of 
the  necessary  instructions  for  the  Admiral,  Arctic  Ocean  as  sub- 
mitted by  Group  North. 

II.  In  connection  with  the  reexamination  of  the  problems  of  poison 
gas  defenses  undertaken  on  orders  from  the  Naval  Staff  Quartermaster 
Division  (see  War  Diary  27  Jul.),  the  Inspector  of  Naval  Ordnance 
suggests  that  an  inspectorate  for  chemical  warfare  be  established 
within  the  Navy,  which  would  at  the  same  time  be  in  charge  of  all 
problems  in  the  fields  of  smoke  screens,  camouflage,  and  fire  fight- 
ing. 

III.  According  to  the  communication  received  from  the  Naval  Liaison 
Officer  to  the  Array  General  Staff,  the  Naval  Staff's  request  for  in- 
vestigation of  the  chances  against  light  Russian  naval  forces  in  the 
Gulf  of  Finland  (War  Diary  17  Jul.)  has  been  transmitted  to  the 
Northern  Army  Group  for  reply.   In  its  reply  of  4  Jul.  to  an  inquiry 
by  the  Naval  Liaison  Officer  to  the  Army  General  Staff,  the  Northern 
Army  Group  had  already  given  the  insufficient  number  of  guns,  in- 
sufficient ammunition  allotments,  lack  of  ground  and  air  reconnais- 
sance, and  ice  conditions  which  prevented  hits  under  water  as  reasons 
for  the  unsatisfactory  results  of  artillery  attacks  on  Russian  na- 
val forces  in  Kronstadt  and  Leningrad.  It  added  that  the  results 
obtained  by  the  Air  Force  in  its  attacks  on  these  ships  were  no 
better  than  those  scored  by  the  artillery.   It  also  mentioned  that 
during  the  winter  the  artillery  did  not  receive  orders  to  destroy 
the  enemy  fleet,  in  order  to  spare  naval  installations;  rather,  em- 
phasis was  placed  on  destroying  essential  industrial  installations. 
The  Artillery  General  with  the  Commander  in  Chief,  Army  believes 
that  the  Russian  naval  forces  in  the  area  mentioned  can  only  be  at- 
tacked if  the  Navy  provides  500  rounds  of  28  cm,  armor-piercing 
shells • 

The  Navy  had  given  up  the  request  to  spare  naval  in- 
stallations as  early  as  September  1941,  but  certain- 
ly no  later  than  18  Jan.  1942  (see  War  Diary  18  Jan. 
1942). 

TV.  According  to  a  communication  from  the  Army  General  Staff,  the 
Japanese  General  Staff  offered  through  the  Military  Attache  in  Tokyo 
on  5  Aug.  to  send  a  general  staff  officer  and- a  technical  officer  with 
special  experience  in  landing  operations  by  air  to  Germany,  if  so  de- 
sired. 

The  Japanese  General  Staff  confirmed  to  the  German  Military  Attache 
for  the  first  time  that  the  Japanese  units  in  Manchukuo  are  in  fact 
being  considerably  reinforced  and  that  the  present  peaceful  rela- 
tions with  the  Soviet  Union  are  not  expected  to  last  much  longer.  The 
best  time  for  a  Japanese  surprise  attack  would  probably  be  around 
the  end  of  August  or  the  beginning  of  September. 

V.   An  intelligence  report  from  London  states  that  due  to  the 
shortage  of  tonnage  the  second  front  cannot  be  established  at  present 
or  in  the  near  future.  The  Swiss  News  Agency  claims  to  have  learned 
from  London  that  the  Axis  powers  and  Japan  sank  321  Allied  ships 
totalling  1,846,900  GRT  during  June  1942. 

The  Swiss  Legation  in  London  has  been  informed  that  the  large-scale 
air  attacks  on  Germany  must  now  be  restricted  since  the  gasoline  which 
is  ready  for  shipment  in  America  cannot  be  brought  up  because  of 

-104- 


CONFIDENTIAL 
10  Aug.  1942 

tanker  shortage.   Great  anxiety  is  caused  by  the  threat  of  German 
submarine  warfare.   According  to  reports  from  Germany,  the  attempt 
to  destroy  the  shipyards  building  submarines  in  Germany  has  so  far 
proved  unsuccessful.   It  will  be  difficult  to  do  this  also  in  the 
future,  since  the  German  submarine  bases  are  too  well  camouflaged, 

VI.  In  view  of  the  Army  preparations  for  operation  "Nordlicht", 
Group  North  expects  that  the  Russian  Baltic  Sea  fleet  will  try  to 
break  out  and  requests  for  this  reason  that  in  case  the  situation 
calls  for  such  a  measure,  the  6th  PT  Boat  Flotilla  be  temporarily 
assigned  to  the  Commander,  Mine  Sweepers,  Baltic  Sea  after  engine 
overhaul  and  firing  practice.  Group  North  furthermore  requests 
that  the  mine  reserves  be  replenished  so  that  tactical  minefields 
can  be  laid,  at  once. 

Basically  the  Naval  Staff  wants  the  6th  PT  Boat  Flotilla  to  operate 
in  the  west  area.   It  reserves  a  decision  about  a  temporary  assign- 
ment of  the  flotilla  to  the  Baltic  Sea,  if  the  situation  so  re- 
quires, until  the  vessels  are  again  ready  for  action  after  comple- 
tion of  engine  overhaul  and  torpedo  firing  practice. 

As  for  replenishing  the  mine  reserve  supplies,  the  Naval  Staff  will 
Issue  the  necessary  directives.   < 

VII.  Should  the  TIRPITZ  and  the  HIPPER  be  unable  to  enter  the  ship- 
yard simultaneously  for  the  period  from  November  till  January,  the 
Naval  Staff  agrees,  as  suggested  by  the  Fleet  Command,  to  have  the 
TIRPITZ  enter  the  shipyard  first  toward  the  end  of  October  and  the 
HIPPER  subsequently.   The  Naval  Staff  Quartermaster  Division  is 
directed  to  fix  the  date  on  which  the  TIRPITZ  should  enter  the  ship- 
yard independent  of  the  transfer  of  the  SCTTARNHORST.   The  Naval 
Staff  is  willing  to  risk  having  no  battleship  in  Norway  temporarily 
in  autumn  in  case  the  transfer  of  the  SCHARNHORST  is  delayed,  if 
thereby  it  is  possible  to  complete  the  TIRPITZ  by  the  middle  of 
March  1943  so  that  she  can  be  transferred  to  Norway  while  the  nights 
are  still  long.   Starting  early  in  September  preparations  are  to  be 
made  for  a  6  weeks  engine  overhaul  of-  the  SCHEER. 

For  copies  of  the  Fleet  Command's  proposal  to  this  effect  and  of  the 
directive  of  the  Naval  Staff  Operations  Division  see  l/Skl  I  op 
19335/42  Gkdos.  in  War  Diary.  Part  B,  Vol.  V. 


Situation  10  Aug.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation! 

No  reports  of  interest  have  been  received. 

2,  Own  Situation; 

Ship  "10"  is  being  informed  that  the  prize  crews  of  the 
HERBORG  and  the  NANKIN  began  their  return  voyage  with  the  TANNENFELS 
on  8  Aug.   Each  prize  crew  is  being  awarded  one  Iron  Cross,  First 
Class,  and  70  to  100^  of  their  members  will  receive  the  Iron  Cross, 
Second  Class.   The  captain  of  the  auxiliary  cruiser  is  to  distribute 

-105- 


CONFIDENTIAL 

i 

10  Aug.  1942 

the  decorations.   For  details  see  Radiogram  1954. 

The  German  Naval  Command,  Italy  reported  that  the  Italian  tankers 
ARCOLA  and  TAIGETE  were  at  6°  41'  N,  26°  59'  W  on  8  Aug.  at  noon. 
The  Commanding  Admiral,  Submarines  has  been  informed  accordingly. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

No  reports  of  special  Interest  have  been  received. 

2.  Own  Situation: 

Atlantic  Coast: 

3  ground  mines  were  swept  in  the  Gironde  estuary.   1  mine 
exploded  by  itself. 

The  supply  ship  UCKERMARK  departed  from  La  Pallice  on  9  Aug.  at  2200 
as  scheduled,  and  the  escorting  vessels  left  her  on  10  Aug.  at  0500. 
At  1940  the  ship  reported  that  she  is  returning  to  Bordeaux.  Group 
West  has  ordered  torpedo  boats  to  bring  her  in.   Since  no  indications 
can  be  obtained  from  radio  intelligence  or  air  reconnaissance,  the  , 
reason  why  the  ship  turned  back  remains  obscure.   The  Group  assumes 
engin  e  tr oub le . 

Channel  Coast: 

Nothing  to  report. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea: 

Enemy  Situation: 

Air  reconnaissance  failed  to  yield  any  results. 

Own  Situation: 

5  ground  mines  were  swept  on  convoy  routes  north  of  the 
Frisian  Islands.   Convoy  operations  proceeded  according  to  plan. 
Bad  weather  restricted  mine-sweeping  operations.   Barrage  nSW  102" 
could  not  be  laid  because  of  unfavorable  weather. 

Special  Item: 

The  Post  Minister  has  expressed  to  the  Armed  Forces  High 
Command  Operations  Staff  his  special  recognition  for  the  manner  in 
which  the  cable  between  Arndal  and  Newbiggin  was  cut  on  3  Jul.  The 


-106- 


CONFIDENTIAL 


10  Aug.  1942 


performance  of  mine  sweeper  "1303"  was  excellent.   Evidently,  the 
cable  was  cut  in  order  to  break  off  an  illegal  communication  line 
between  Norway  and  England.   The  Post  Minister  believes  that  for 
technical  reasons  it  is  impossible  that  there  could  be  a  branch 
line  .west  of  the  spot  where  the  cable  was  cut. 

2.   Norway,  Arctic  Ocean: 

Enemy  Situation: 

Reconnaissance  searching  for  convoy  PQ.  18  was  unsuccessful, 
Air  reconnaissance  reports  that  the  Olga  Strait  is  no  longer  navig- 
able between  19°  and  25°  E. 

Own  Situation: 

On  8  Aug.  the  Russian  battery  on  the  Rybachi  Peninsula  un- 
successfully fired  on  2  landing  craft  en  route  from  Petsamo  to 
Kirkenes.   On  9  Aug.  enemy  planes  raided  a  convoy  at  the  latitude  of 
the  Ko  Fjord  and  patrol  vessels  off  Svaerholthavet.   Patrol  vessel 
"6163'*  was  damaged  by  an  aerial  torpedo  but  was  towed  into  Honnings- 
vaag.   In  the  northern  and  western  coast  areas,  enemy  planes  were  re- 
ported flying  daylight  missions  over  the  areas  of  Trondhelm  and 
Stavanger  on  9  Aug. 

The  transfer  of  the  LUETZOVV  has  started  as  scheduled.   According  to 
the  directive  of  Group  North,  the  radio  communication  intercept  de- 
tachment of  the  LUETZOW  will  be  embarked  on  the  mine  layer  ULM,  be- 
ginning 13  Aug.,  to  participate  in  the  operation  in  the  Novaya 
Zemlya  area.  « 

No  incidents  I  were  reported  by  the  Admiral,  Arctic  Ocean. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation: 

No  incidents  occurred  in  the  area  of  the  Commanding  Ad- 
miral, Defenses,  Baltic  Sea. 

On  9  Aug.  the  minefields  "Seeigel  XXIV"  and  "Seelgel  XXV"  were  laid 
in  the  Gulf  of  Finland  according  to  plan.   A  300  m.  wide  channel  has 
been  swept  in  UMB  minefield  "Nashorn  12".   Convoy  operations  pro- 
ceeded as  planned. 

The  Army  High  Command  urgently  requested  the  Commanding  Admiral, 
Baltic  Countries  to  release  Army  Coastal  Artillery  929  and  Battery 
515,  since  only  very  few  guns  are  available  for  operation  "Nord- 
lichtt\ 

The  Naval  Staff  Quartermaster  Division  will  attend  to  the  matter. 


-107- 


CONFIDENTIAL 
10  Aug.  1942 

V.    Submarine  Warfare 

1.  Enemy  Situation; 

Reconnaissance  activity  over  the  entire  Bay  of  Biscay  was 
very  lively.   3  submarine  sighting  reports  were  intercepted.   A 
British  vessel  was  located  320  miles  west  of  Brest. 

2.  Own  Situation: 

Submarine  U  "255"  reported  from  the  Arctic  Ocean  that  she 
has  taken  up  her  patrol  position  at  the  entrance  to  the  Hinlopen 
Strait  as  ordered.   In  general,  the  Naval  Staff  considers  it  in- 
advisable to  send  such  reports. 

In  the  North  Atlantic,  contact  with  the  eastbound  convoy  was  re- 
established at  0630  and  was  maintained,  with  some  interruptions, 
throughout  the  day.   A  number  of  successes  were  reported,  which  are 
particularly  gratifying  in  view  of  the  fact  that  our  submarines  are 
almost  exclusively  manned  by  new  commanders.  Submarine  U  "704"  re- 
ported that  she  has  torpedoed  a  steamer  of  the  ORMONDE  class 
(14,982  GRT).   Submarine  U  "597"  reported  3  hits  on  two  8,000  GRT 
steamers  in  the  central  column  of  the  convoy.  Submarine  U  "438"  re- 
ports hitting  a  5,000  GRT  steamer  end  probably  sinking  a  6,000  GRT 
steamer  which  was  not  moving.   Submarine  U  "660"  reports  that  she 
torpedoed  4  steamers  but  was  driven  off  and  could  not  observe  their 
sinking.  The  Commanding  Admiral,  Submarines  has  ordered  the  opera- 
tion to  be  continued. 

No  successes  were  reported  from  the  American  coast. 

In  the  West  Indies  area  submarine  U  "108"  sank  the  Norwegian  steamer 
BRENAS  (2,687  GRT)  in  quadrant  EO  2276  and  took  the  captain  aboard. 
Submarine  U  "510"  sank  a  14,000  GRT  tanker  in  quadrant  ED  3927. 

Of  the  submarine  group  operating  in  the  South  Atlantic,  submarine 
U  "752"  reports  that  in  quadrant  ET  3383  she  sank  the  former  German 
steamer  KASSEL  proceeding  under  the  Dutch  flag  with  a  cargo  of 
planes  and  locomotives  from  New  York  to  Alexandria.  A  U.S.  cruiser 
and  destroyers  had  stopped  the  steamer  in  quadrant  ET  4570. 

For  further  reports  see  .supplement  to  the  submarine  situation  in  War 
Diary,  Part  B,  Vol.  IV. 


VI.  Aerial  Warfare 

1.    British  Isles  and  Vicinity; 

On  the  night  of  10  Aug.  a  few  of  our  planes  operated  over 
Colchester  and  Hastings.   On  the  night  of  9  Aug.  our  planes  raided 
Brighton,  Liverpool,  Manchester,  and  Newcastle. 

Of  the  20  enemy  incursions  during  the  night  of  10  Aug.,  15  were  over 
the  Reich  territory.   No  bombs  were  dropped.  The  attacks  were  con- 
centrated on  the  Baltic  Sea  entrances  and  Kiel  Bay.   It  is  presumed 
that  mines  were  dropped. 

-108- 


CONFIDENTIAL 
10  Aug.    1942 

2.  Mediterranean  Theater; 

For  reconnaissance  results  see  Enemy  Situation,  Medi- 
terranean. 

Fighters  and  bombers  attacked  airfields  on  Malta.   In  Africa,  the 
number  of  fighters  operating  in  the  area  of  the  Africa  Corps  was 
increased. 

3.  Eastern  Front ; 

Reconnaissance  planes  were  active  over  the  Volga  River, 
the  Caspian  Sea,  and  the  Arctic  Ocean.  Otherwise  there  was  noth^ 
ing  to  report. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

According  to  an  intelligence  report  from  Ceuta,  on  the 
night  of  9  Aug.  a  convoy  of  37  vessels,  among  them  1  aircraft 
carrier,  3  cruisers,  10  destroyers,  3  gunboats,  and  19  freighter's, 
passed  through  the  Strait  of  Gibraltar  in  easterly  direction.  On 
the  morning  of  10  Aug.  the  ARGUS  with  4  destroyers  entered  Gibral- 
tar from  the  west.   At  1400  the  ARGUS  was  still  located  in  Gibral- 
tar.  Fog  prevented  any  further  observations.   Around  1900,  air 
reconnaissance  spotted  an  eastbound  convoy  composed  of  2  battle- 
ships, 2  aircraft  carriers,  2  cruisers,  14  destroyers,  and  12 
steamers  55  miles  north-northeast  of  Oran.   Evidently  this  is  the 
same  convoy  that  was  sighted  from  Ceuta  the  night  before.   The  size 
of  this  eastbound  convoy  makes  it  appear  doubtful  that  it  involves 
merely  a  supply  operation,  possibly  including  plane  shipments  for 
Malta.  .  It  may  be  that  this  is  the  convoy  which,  according  to  an  in- 
telligence report,  was  composed  of  37  ships  carrying  25,000  men  for 
Egypt  and  departed  from  Portrush  for  Gibraltar  on  25  Jul.,  to  pro- 
ceed from  there  through  the  Mediterranean.   (See  War  Diary  28  Jul. ) 

If  the  report  is  correct,  it  would  offer  an  affirm- 
ative answer  to  the  Naval  Staff's  question  as  to 
whether  the  British  would  actually  dare  to  let  such 
a  valuable  convoy  cross  the  whole  length  of  the  Medi- 
terranean. 

In  the  central  Mediterranean,  air  reconnaissance  spotted  lively  sub- 
marine activity.   4  submarines  were  reported  sighted.   Radio  intelli- 
gence observed  westbound  convoy  movements  in  the  eastern  Mediter- 
ranean. 

2.  Own  Situation,  Mediterranean; 

On  7  Aug.  the  Admiral,  German  Naval  Command,  Italy  left 
with  the  Commanding  General,  Armed  Forces,  South  by  plane  for 
Africa  where  he  will  presumably  stay  3  days  for  conferences  with  the 
Panzer  Army  and  the  Italian  command  posts. 


-109- 


CONFIDENTIAL 
10  Aug.  1942 

On  11  Aug.  the  North  African  Operations  Headquarters  of  the  Ger- 
man Naval  Command,  Italy  will  be  transferred  to  Tobruk  for  the 
purpose  of  better  control  of  coastal  shipping  and  better  liaison 
with  the  Italian  Navy.   (See  Telegram  0230. ) 

On  9  Aug.  an  Italian  landing  craft  sank  in  the  roadstead  of  Tobruk 
as  a  result  of  a  mine  explosion.        \ 

In  the  night  of  8  Aug.  50  aerial  mines  (not  5  as  previously  re- 
ported) were  dropped  in  Marsa  Matruh.   The  Nava^  Staff  has  re- 
quested the  German  Naval  Command,  Italy  to  report  immediately  on 
the  firing  devices  with  which  the  mines  found  in  that  area  are 
equipped.   The  chances  to  have  the  mines  swept  by  mine-sweeping 
planes  appear  at  present  limited  and  depend  on  the  results  of  the 
investigation  of  the  firing  devices.   (See  Telegram  1717.) 

On  19  May  the  Naval  Staff  had  asked  the  German  Naval  Command,  Italy 
to  clarify  the  following  points: 

a.  Is  it  certain  that  the  Italians  will  provide  their  share 
of  the  mines  in  time  to  ensure  laying  of  the  east-west  wall   in  the 
Aegean  Sea? 

The  Naval  Staff  considers  this  to  be  a  prerequisite  for  our  supply- 
ing the  requested  additional  1,200  UMA  mines. 

b.  The  German  Naval  Command,  Italy  is  requested  to  confirm 
that  in  its  opinion  laying  of  the  east-west  wall  in  the  Aegean  Sea 
will  not  affect  unfavorably  the  mine  operations  in  the  Strait  of 
Sicily,  off  Malta,  off  Benghazi,  and  farther  to  the  east,  which 
the  Naval  Staff  considers  more  urgent. 

In  the  meantime,  the  Naval  Staff  has  granted  the  request  of  Group 
South  that  the  UMA  and  EMC  mines  which  are  available  in  the  Aegean 
area  for  submarine  warfare  be  used  for  the  first  rows  of  the  mine- 
fields between  the  islands.  The  Italian  mines  will  then  be  used 
to  reinforce  and  deepen  the  minefields. 

On  14  Jul.  the  German  Naval  Command,  Italy,  after  repeated  requests, 
finally  transmitted  the  views  of  the  Italian  Admiralty  presenting 
an  over-all  plan  for  the  use  of  Italian  mines.  This  plan  provides 
that,  except  for  the  mines  and  nets  which  are  to  be  laid  in  the 
Strait  of  Sicily,  all  other  mines  and  nets  will  gradually  be  made 
ready  for  use  in  the  planned  mine  operation  in  the  northern  Aegean, 
and  will  be  placed  at  the  disposal  of  the  Admiral,  Aegean  Sea,  who 
has  command  of  the  operation. 

On  28  Jul.  the  Naval  Staff,  being  particularly  anxious  to  make  sure 
that  the  operation  in  the  Strait  of  Sicily  is  not  unfavorably  af- 
fected, asked  the  German  Naval  Command,  Italy  to  state  its  views  on 
this  question  once  more.   On  6  Aug.  the  German  Naval  Command,  Italy 
replied  that  neither  the  mines  used  in  the  Aegean  Sea  nor  the  with- 
drawal of  minelaying  vessels  for  operations  in  that  area  will  jeop- 
ardize the  operation  in  the  Strait  of  Sicily.   On  8  Aug.  the  German 
Naval  Command,  Italy  stated  in  a  supplementary  report  that  the 
Italian  Admiralty  repeatedly  gave  the  lack  of  fuel  as  the  reason  for 
not  laying  minefields  already  planned,  e.g.,  off  Tobruk  and  Benghazi. 
So  far,  it  has  not  been  possible  to  gain  a  definite  promise  from  the 
Italia  is  that  the  operation  in  the  Strait  of  Sicily  will  be  carried 
out  promptly.  The  German  Naval  Command,  Italy  is  continuing  its 

-110- 


CONFIDENTIAL 


10  Aug.  1942 


*o 


efforts  in  this  direction. 

3»   Transport  of  Supplies  to  North  Africa: 

Transport  of  supplies  from  Italy  and  Greece  to  North 
Africa  and  along  the  North  African  coast  proceeded  according  to 
plan .without  incidents. 

According  to  a  list  compiled  by  the  Naval  Staff  Quartermaster 
Division,  Shipping  and  Transport  Branch,  out  of  the  total  of  45 
German  ships  (166,957  GRT)  engaged  In  the  transport  of  supplies 
to  North  Africa,  34  vessels  totalling  138,476  GRT  have  been  lost 
and  3  vessels  totalling  4,417  GRT  damaged,  thus  leaving  only  8 
ships  totalling  about  24,000  GRT  in  sailing  condition. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

Submarine  chase  brought  no  success.   On  6  Aug.  another 
auxiliary  sailing  vessel,  carrying  112  Greek  workers  for  Crete,  is 
said  to  have  been  sunk  off  the  eastern  coast  of  the  Peloponnesos. 

Black  Sea: 

Enemy  Situation: 

Air  reconnaissance  observed  intense  loading  activity  in 
Tuapse.   1  tanker,  14  steamers,  8  coastal  vessels,  and  13  escort 
vessels  were  sighted  in  that  harbor.   On  the  evening  of  8  Aug.  a 
submarine  was  located  east  of  Ivanbaba.   It  is  suspected  that  mines 
were  laid  between  Cape  Ilich  and  the  Ivanbaba  Bay. 

Own  Situation: 

In  the  night  of  9  Aug.  3  landing  craft  and  3  motor  mine 
sweepers  passed  through  the  Kerch  Strait  northward  without  inci- 
dent.  16  landing  craft  assigned  to  operation  "Bluecher"  and  4  en- 
gaged in  the  transport  of  supplies  to  the  Sea  of  Azov  are  now  in 
that  area.   On  11  Aug.  one  of  these  4  barges  will  join  the  "Bluecher** 
group. 

During  the  torpedo  operation  of  the  1st  PT  Boat  Flotilla  off 
Tuapse  during  the  night  of  9  Aug.  PT  boat  S  "102"  sank  a  southeast- 
bound  steamer  of  at  least  4,000  GRT  carrying  ammunition  and  troops. 
Escorting  destroyers  dropped  depth  charges,  thus  assuming  a  sub- 
marine attack.   One  of  the  destroyers  was  unsuccessfully  torpedoed. 
No  contact  was  made  with  the  enemy  off  Novorossisk. 

In  view  of  the  fact  that  4  of  the  boats  of  the  1st  PT  Boat  Flotilla 
are  due  to  have  their  engines  replaced,  Group  South  endorses  as 
urgent  the  request  of  the  Admiral,  Black  Sea  for  prompt  dispatch  of 
PT  boat  engines.   The  matter  will  be  attended  to  by  the  Naval  Staff 
Quartermaster  Division  and  the  Naval  Construction  Division. 

5.  Special  Item: 

In  his  reply  to  the  Commanding  General,  Armed  Forces, 
South  the  Commanding  Admiral,  Group  South  declares  that  it  is  an 
overstatement  to  say  that  lack  of  air  cover  was  the  sole  cause  for 

-111- 


CONFIDENTIAL 
10  Aug.  1942 

the  loss  of  the  WACHTFELS,  sirtce  air  escort  can  never  prevent  a 
submarine  attack.   The  Commanding  Admiral,  Group  South  asks  the 
Commanding  General,  Armed  Forces,  South  to  postpone  any  final 
conclusions  until  the  results  of  the  court-martial  investigation 
are  available.   Group  South  has  informed  the  Naval  Staff  and 
through  it  the  Armed  Forces  High  Command  to  this  effect.   (See 
Telegram  1200. ) 


VIII.  Situation  East  Asia 

The  German  Admiral  in  Tokyo  has  transmitted  a  report  of  the 
Chief  of  the  Japanese  Naval  Staff  about  the  engagements  in  the 
Solomons. 

la    On  6  Aug.  bad  weather  prevented  air  reconnaissance.  On 
the  morning  of  7  Aug.  enemy  forces  consisting  of  9  cruisers,  11 
destroyers,  and  30  transports  emerged  unexpectedly  off  Tulagi  on  I 

Florida  Island.  The  appearance  of  enemy  fighters  indicated  that 
at  the  same  time  a  force  of  at  least  1  aircraft  carrier  and  1  or 
2  auxiliary  aircraft  carriers  was  at  some  point  beyond  the  range 
of  Japanese  reconnaissance. 

2.  Enemy  troops  landed  on  Florida  Island,  where  300  Jap- 
anese naval  troops  are  stationed,  and  on  Guadalcanal,  where 
there  are  600  Japanese  naval  troops,  in  addition  to  2000  Jap- 
anese workers  engaged  in  building  an  airfield. 

3.  On  7  Aug.  some  25  Japanese  naval  land-based  planes  carry- 
ing bombs  took  off  from  Rabaul  under  strong  fighter  escort  to  at- 
tack the  enemy  force.   Over  Tulagi  heavy  fighting  developed  be- 
tween the  Japanese  planes  and  some  60  enemy  carrier-based  fighters, 
of  which  the  Japanese  supposedly  shot  down  52.   Bombing  was 
hampered  by  the  aerial  combat  and  clouds,  with  the  result  that 
only  2  destroyers  were  damaged  by  bombs.   The  fighters  re- 
fueled at  Buka  Island  on  their  return  flight. 

4.  On  8  Aug.  Japanese  planes  took  off  from  Rabaul  and  re- 
peatedly torpedoed  enemy  vessels  riding  at  a,nchor.  .. 

Result:   2  heavy  cruisers,  2  light  cruisers,  and  9  transports  sunk, 
2  heavy  cruisers  and  2  transports  left  burning. 

5.  In  the  night  of  8  Aug.  the  Japanese  sent  their  naval 
forces  into  action,   ^he  forces  consisted  of  5  heavy  and  2  light 
cruisers,  and  1  destroyer. 

Result:   4  destroyers  sunk,  2  cruisers  set  on  fire.   2  Japanese 
cruisers  were  slightly  damaged. 

6.  On  the  morning  of  9  Aug.  air  reconnaissance  located  the 
following  vessels  off  Tulagi:  1  cruiser,  2  light  cruisers  or  de- 
stroyers, 7  destroyers  or  mine  sweepers,  and  19  transports.  Some- 
what farther  away  there  were  6  destroyers,  and  100  miles  south  of 
Tulagi  1  enemy  battleship  or  heavy  cruiser  which  was  sunk  by  an 
aerial  torpedo. 


-112- 


CONFIDENTIAL 


10  Aug.  1942 


7.  Another  air  attack  against  the  enemy  forces  still  off 
Tulagi  was  started  on  the  morning  of  10  Aug.,  but  meanwhile  the 
enemy  had  disappeared. 

8.  The  situation  on  Florida  Island  and  Guadalcanal  is  un- 
clear.  Defensive  combat  is  till  In  progress. 

9.  Exchange  of  radio  messages  intercepted  on  10  Aug.  in- 
dicates that  strong  enemy  forces  are  at  sea  southeast  of  the 
Solomon  Islands.   However,  they  remain  outside  the  Japanese 
reconnaissance  range. 

10.  The  actual  scope  of  the  American  offensive  plan  is  not 
clear.   From  the  size  of  the  force  sent  into  action  it  may  be 
concluded  that, -in  addition  to  the  Solomon  Islands,  the  enemy 
intends  to  attack  the  Bismarck  Archipelago. 

11.  The  actual  number  of  vessels  sunk  differs  from  the 
figures  which  were  published;  this  difference  is  probably  due 

to  the  fact  that  ships  which  v/ere  at  first  seen  burning  and  were 
later  hit  for  a  second  time  were  counted  twice. 

* 

12.  A  simultaneous  attack  was  launched  by  U.S.  naval  forces 
consisting  of  4  cruisers,  10  destroyers,  and  2   more  warships  on 
Kiska  (Aleutians)  on  8  Aug.   The  attack  was  confined  to  a  30 
minute  bombardment,  after  which  the  enemy  ships  turned  away  and 
disappeared  in  the  fog.   Evidently  no  landing  was  planned.   The 
enemy  lost  1  ship-borne  reconnaissance  plane.   The  dairage  caused 
is  slight. 

The  U.S.  Navy  Department  reports  from  the  South  Pacific  that  the 
offensive  operations  against  the  Japanese  forces  on  the  Solomon 
Islands  are  being  continued.   The  report  states  that  the  Ameri- 
can forces  met  with  rather  strong  resistance  and  that  it  is  still 
too  early  to  make  known  losses  on  either  side. 

According  to  a  report  from  the  Military  Attache  in  Bangkok,  the 
Japanese  intend  to  utilize  their  combat  experience  in  China  in 
the  event  of  a  future  invasion  in  India  by  employing  only  small 
forces,  causing  confusion  by  quick,  deep  thrusts,  and  instigat- 
ing uprisings.   The  time  for  this  action  will  be  determined  by 
military  developments  in  the  Middle  East.  An  air  offensive  in 
which  major  forces  are  employed  cannot  be  launched  before  Novem- 
ber.  It  is  difficult  to  make  a  sufficient  number  of  troop  trans- 
ports available.   Possession  of  Ceylon  as  a  military  and  naval 
base  is  considered  important. 

Enemy  planes  attacking  Amboina  allegedly  damaged  a  Japanese 
cruiser.   The  Japanese  have  occupied  the  city  and  airfield  of 
Kokoda  on  New  Guinea. 

According  to  information  from  Japanese  sources  in  Bangkok,  the 
Japanese  offensive  against  Australia  has  been  postponed.   It  is 
planned  to  encircle  that  continent  by  a.  gradual  occupation  of 
further  archipelagos,  and  to  disrupt  the  enemy's  supply  lines. 

At  the  present  time,  large-scale  operations  are  being  prepared 
to  be  launched  from  the  southwestern  Pacific  against  Ceylon, 
India,  Madagascar,  and  South  Africa, 


-113- 


CONFIDENTIAL 
10  Aug.    1942 

IX,      Army  Situation 

1.  Russian  Front t 

Army  Group  A; 

Our  troops  advancing  toward  the  lower  Kuban  River  have 
reached  the  area  of  Slavyansk.  Enemy  groups  remaining  in  the 
area  east  of  Maikop  are  attempting  to  break  through  to  the  east 
and  southeast.   Motorized  forces  are  pushing  forward  from  Mosto- 
voye  west  toward  the  Byelaya  River.   Other  troops  are  advancing 
on  both  sides  of  the  Manych  River  in  southeasterly  direction. 

Army  Group  B: 

Tightening  of  the  pocket  west  of  Kalach  continues.  The 
points  of  penetration  near  Svoboda  were  mopped  up.   North  of  Vor- 
onezh armored  enemy  forces  penetrated  our  lines.   Counterattacks 
are  in  progress. 

Central  Army  Group : 

Fighting  at  the  point  of  penetration  near  Rzhev  con- 
tinues.  Our  troops  have  so  far  failed  to  close  the  gap. 

Northern  Army  Group: 

The  enemy  renewed  his  attacks  on  the  same  points  as 
during  the  last  few  days  without  achieving  any  success. 

2.  Finnish  Front: 

No  noteworthy  fighting  was  reported. 

3.  North  Africa: 

So  far,  no  report  has  been  received. 

jHHHHHiWattHttM'WHHHHHHKHHHW 


-114- 


CONFIDENTIAL 


11  Aug.  1942 


Tt.pma  of  Political  Tmnortance 

The  public  continues  to  show  great  interest  in  the  Moscow  confer- 
ences.  American  sources  observe  that  the  desperate  situation  on  the 
Eastern  Front  is  more  dangerous  for  Great- Britain  than  for  the 
U.S.S.R.   The  latter  is  relatively  safe  behind  the  Ural  moun- 
tains whereas  Britain  will  have  to  face  the  whole  impact  of  the  con- 
centrated German  power  turned  against  her.   The  question  in  Moscow 
is  not  whether  but  when  a  second  front  is  to  be  established, 

Portuguese  naval  circles  believe  that  lack  of  tonnage  will  prevent 
the  British  from  making  a  landing  attempt  in  Portugal. 

The  Central  American  governments  intend  to  protest  at  Washington  in 
connection  with- the  announced  complete  suspension  of  ship  traffic 
from  North  America  to  Central  American  harbors.   A  news  agency  re- 
ports that  the  U.S.  Department  of  State  has  concluded  an  agreement 
with  the  Central  American  countries  for  construction  of  a  1,000  km. 
transcontinental  highway. 

India; 

Due  to  the  energetic  measures  on  the  part  of  the  British  Indian 
Government,  the  Congress  resolution  has  so  far  failed  to  produce  any 
serious  threat  to  the  internal  political  situation.   For  reasons  of 
propaganda,  the  German  press  tries  to  prove  the  opoosite. 

Spain: 

The  U.S.  Ambassador  in  Madrid  stated  in  a  speech  in  Barcelona  that 
everywhere  in  Spain  he  has  found  willingness  to  cooperate  with*  the 
U.S.A. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  For  a  newspaper  photo  of  PT  boat  S  "38"  flying  the  British  flag, 
captured  by  the  British  in  the  Channel  on  20  Nov.  .1940  (see  War  Diary 
20  Nov.  1940),  see  War  Diary,  Part  B,  Vol.  V. 

II.  Report  by  the  Chief.  Naval  Construction  Division: 

1.  During  the  operation  of  the  KOELN  it  became  evident  that 
the  cables  of  the  cruiser  are  in  such  bad  condition  that  the  ship  is 
hampered  thereby.   It  was  known  that  the  cables  were  in  poor  con- 
dition, but  it  was  hoped  that  the  minor  improvements  made  while  the 
ship  was  being  repaired  would  suffice. 

The  Chief,  Naval  Staff  finds  this  very  unfortunate.   The  Naval  Staff 
Quartermaster  Division  will  take  care  of  the  matter. 

2.  The  "Hansa"  program  can  not  get  under  way  because  there  is 
no  rolled  iron  available.   The  Reich  Commissioner  of  Maritime  Ship- 
ping has  suggested  that  the  Navy  make  7,500  tons  of  rolled  iron 
available  for  the  program. 

During  the  current  quarter  the  Navy  has  50,000  tons  of  rolled  iron  at 
its  disposal,  of  which  25,000  tons  have  already  been  milled  and  18,000 


-115- 


CONFIDENTIAL 
11  Aug.  1943 

tons  are  earmarked  for  submarines;  these  cannot  be  touched.  A 
decision  must  be  made  about  the  remaining  7,000  tons. 

The  Chief,  Naval  Construction  Division  states  that  there  is  no  way 
of  determining  now  which  items  would  be  affected  by  giving  up  those 
7,000  tons  for  the  benefit  of  the  "Hansa"  program.   There  are 
certain  reserves  with  which  the  gap  could  partly  be  overcome,  but 
delays  will  be  inevitable.  ,  B 

On  the  other  hand,  the  Chief,  Naval  Construction  Division  believes 
that  the  Navy  will  not  be  able  to  escape  a  decision  by  the  Fuehrer 
unless  it  releases  the  7,000  tons.   The  Chief,  Naval  Ordnance 
Division  observes  that  the  naval  offices  have  repeatedly  been  re- 
proached for  hoarding  supplies,  and  in  his  opinion  the  request 
should  be  granted. 

The  Chief  of  Staff,  Naval  Staff  and  the  Chief,  Operations  Branch, 
Naval  Staff  Operations  Division  both  declare  that  the  expected 
delays  will  affect  just  those  vessels  which  are  urgently  needed 
for  submarine  operations. 

The  Deputy  Chief,  Naval  Staff  Quartermaster  Division  suggests  a 
compromise  solution  by  releasing  possibly  3,000  tons. 

The  Chief,  Naval  Construction  Division  points  out  that  even  this 
would  bring  about  a  Fuehrer  decision. 

On  the  assumption  that  the  Navy  has  some  reserve  supplies,  the  Com- 
mander in  Chief,  Navy  decides  that  the  7,000  tons  are  to  be  re- 
leased. 

III.  Report  by  the  Chief.  Naval  Ordnance  Division: 

1.  The  Minister  for  Armaments  and  War  Production  has  ex- 
pressed fears  that  the  defense  installations  on  a  coastal  sector 
near  Cape  Gris  Nez  which  is  particularly  well  suited  for  enemy 
tank  landings  are  not  adequate,  and  has  stated  that  he  will  report 
on  the  matter  to  the  Fuehrer  who  is  the  responsible  authority  in 
this  particular  case.  The  Naval  Ordnanoe  Division  is  investigating 
whether  the  captured  Polish  7.5  cm  guns  could  be  made  available  for 
reinforcing  the  anti-tank  defenses  of  the  naval  battery  in  the  men- 
tioned sector. 

2.  The  original  smooth  cooperation  between  Army  and  Navy 
headquarters  in  the  coastal  defense  program  entrusted  to  the  Army 
by  a  Fuehrer  directive  is  becoming  more  and  more  difficult.  The 
Chief,  Naval  Ordnance  Division  believes  that  these  difficulties 
have  their  origin  in  the  tendenoy  on  the  part  of  subordinate  Army 
offices  to  bring  the  naval  fortification  construction  under  their 
control  too.  It  is  intended  to  obtain  a  clarification  from  General 
Jacob  of  the  Engineers. 

3.  The  demand  for  mobile  coastal  artillery,  raised  on  the 
occasion  of  the  inspection  tour  of  the  Commander  in  Chief,  Navy 

to  the  west  area,  is  being  considered.   It  is  planned  to  use  heavy 
caterpillar  guns.   To  avoid  duplication,  the  Army  and  the  Navy  have 
divided  development  of  the  gun  oalibers  in  question.   The  Navy  is 
working  on  28  cm.  guns. 


-116- 


CONFIDENTIAL 
11  Aug.  1942 

IV.  Report  bv  the  Chief.  Naval  Staff  Intelligence  Division; 

Reports  from  Moscow  are  still  too  incomplete  to  permit  a  clear 
evaluation  of  the  progress  of  negotiations.   The  events  around  the 
Solomon  Islands  are  bound  to  create  a  strange  impression  in  Moscow, 
inasmuch  as  the  Americans  are  carrying  out  large-scale  operations 
involving  heavy  losses  in  the  Pacific  while  the  Russians  are  clamor- 
ing desperately  for  a  second  front  in  Europe.   Admiral  King  has 
issued  a  communique  concerning  the  developments  off  the  Solomon 
Islands.   For  details  see  Situation  East  Asia. 

Basing  his  report  on  data  from  the  Army  General  Staff,  the  Chief, 
Naval  Intelligence  Division  discusses  the  economic  importance  of 
the  Caucasus,  the  road  and  traffic  situation,  and  population 
problems. 

V.  The  Chief,  Naval  Staff  asks  the  Deputy  Chief,  Naval  Staff 
Quartermaster  Division  whether  the  request  of  the  Admiral,  Arctic 
Ocean  for  additional  10.5  cm.  guns  to  be  emplaced  at  Agdenes  and 
Hysnes  (Trondheim  Fjord)  againBt  PT  boats  penetrating  into  the 
fjord  is  being  fulfilled.   The  Naval  Staff  Quartermaster  Division 
will  investigate  the  matter. 


Special  Items: 

I.  On  9  and  10  Aug.  the  Admiral.  Arctic  Ocean  reported  on  his 
plans  for  operation  "Wunderland"  (see  War  Diary  10  Aug.)  based  on 
instructions  from  Group  North.   In  its  first  stage,  the  operation 
will  be  aimed  at  intercepting  all  convoys  and  unescorted  vessels 
on  the  western  half  of  the  Siberian  route.   The  operation  can  be 
extended  to  the  Yenisei  River  by  a  thrust  up  to  Dickson  Island. 
Group  North  has  approved  these  measures.   For  the  operations  plan 
of  the  Admiral,  Arctic  Ocean  and  the  stand  of  Group  North  see 
l/Skl  1551  and  1557/42  Gkdos.  Chefs,  in  File  "Operation  9CHEER 

in  the  Kara  Sea  in  summer  1942". 

The  Air  Force,  Operations  Staff  was  notified  of  operation  "Wunder- 
land" and  of  the  reconnaissance  and  escort  missions  requested  of 
the  5th  Air  Force  via  Telegram  l/Skl  I  op  1556/42  Gkdos.  Chefs. 
The  Permanent  Representative  of  the  Commander  in  Chief,  Navy  at 
the  Fuehrer  Headquarters  was  informed  for  information  of  the 
Fuehrer  via  Telegram  l/Skl  I  op  1558/42  Gkdos.  Chefs.   (See  File). 

II.  The  Naval  Staff  Quartermaster  Division  has  agreed  to  the 
organizational  changes  suggested  by  the  Chief,  Naval  Construction 
Division  at  the  conference  on  the  situation  with  the  Commander 
in  Chief,  Navy  on  10  Aug.  (see  War  Diary  10  Aug.)  namely,  that 
the  shipyard  control  staff  in  Nikolayev  be  dissolved  and  replaced 
by  inspectors,  provided  the  following  projects  are  carried  out  as 
promised  by  the  Chief,  Naval  Construction  Division: 

1.  Immediate  construction  of  3  subchasers  and  6  war  trans- 
ports. 

2.  Completion  of  necessary  repairs  on  warships  in  the  Black 
Sea. 

3.  A  guarantee  to  the  effect  that  later  there  will  be  a 
possibility  of  building  a  navy  yard. 

-117- 


CONFIDENTIAL 
11  Aug.  1942 

Shipyard  personnel  released  from  Nikolayev  is  to  be  added  to  the 
Navy  plants  which  are  working  efficiently  in  Mariupol,  Kherson, 
Feodosiya,  and  other  places. 

III.  According  to  a  report  from  the  Naval  Staff  Quartermaster  Divi- 
sion, Shipping  and  Transport  Branch,  85  ships  totalling  254,684  GRT, 
with  a  loading  capacity  of  350,087  tons,  have  been  offered  to  the 
Reich  Commissioner  of  Maritime  Shipping.   Of  these,  23  ships  total- 
ling 87,350  GRT,  with  a' loading  capacity  of  126,990  tons,  have 
already  been  handed  over  to  the  shipping  companies. 

The  85  ships  placed  at  the  disposal  of  the  Reich  Comnissioner  of 
Maritime  Shipping  include  all  Norway  ships  and  all  vessels  used  in 
distributing  and  bringing  up  supplies,  as  well  as  all  the  dispens- 
able troop  transports.   Ships  belonging  to  the  navy  yards,  arsenals, 
and  commissary  offices  will  be  handed  over  shortly. 

IV.  As  learned  by  the  Naval  Staff  Operations  Division,  the  destroyej 
in  the  Grirasoe  area  scraped  bottom  or.  a  rocky  ridge  in  the  fairway, 
Thich  is  only  a  few  hundred  meters  long,  is  not  charted,  and  was 

not  known  before.   The  Naval  Staff  Operations  Division  requests 

the  Naval  Staff  Quartermaster  Division  to  do  everything  in  its  power 

to  prevent  repetition  of  such  accidents. 

V.  The  Naval  Staff  Operations  Division  transmits  to  the  Naval 
Staff  Quartermaster  Division  its  views  on  transferring  shipyards 
to  the  east  because  of  danger  from  air  raids,  requesting  that  this 
idea  be  followed  up,  and  suggestions  be  worked  out  with  the  Naval 
Construction  Division  for  measures  to  cooe  with  this  situation. 

For  ccpy  of  the  instruction  see  l/Skl  I  a  19218/42  Gkdos.  in  War 
Diary,  Part  B,  Vol.  V. 


Situation  11  Aug.  1948 

I.    War  in  Foreign  Waters 

1.  Enemy  Situation: 

There  is  nothing  to  report. 

2.  Own  Situation: 

i 

The  Japanese  Navy  has  requested  the  German  Admiral  in 
Tokyo  to  have  all  prisoners  debark  in  Batavia  in  the  future,  with 
the  exception  of  those  needed  in  Tokyo  for  questioning.  German 
ship  commands  should  get  in  touch  with  the  naval  commander  in 
Batavia.   Secrecy  is  assured. 

The  Naval  Attache  in  Tokyo  is  requested  to  indicate  immediately  the 
ports  of  departure  and  destination,  as  well  as  the  cargoes,  of  the 
HERBORG  and  the  MADRONO,  so  that  the  prize  court  proceedings  can  be 
completed. 

The  Naval  Attache  in  Tokyo  is  further  requested  to  state  immediately 
the  date  on  which  the  TANNEN7ELS  will  reach  point  "Lille". 


-118- 


CONFIDENTIAL 


11  Aug.  1942 


Via  Radiogram  1959  all  vessels  in  foreign  waters  are  informed  about 
the  sinking  of  the  Dutch  steamer,  the  former  German  KASSEL,  in 
quadrant  ET  73  and  about  prisoner  statements  that  the  steamer  was 
stopped  by  U.S.  cruisers  and  destroyers  in  quadrant  ET  4570. 

A  report  on  the  enemy  situation  is  being  sent  nut  via  Radiograms 
0211  and  2225. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

Photographic  reconnaissance  shows  2  destroyers,  1  corvette, 
6  steamers,  and  40  small  vessels  in  Cowes.   2  cruisers,  7  destroyers, 
19  mine  sweepers,  10  PT  boats,  some  50,000  to  60,000  GRT  of  merchant 
tonnage,  9  ocean-going  tugs,  aoproxiraately  120  tow  barges  and  80 
small  vessels  were  located  in  Portsmouth.   160  to  170  vessels  were 
located  in  the  upper  Chichester  Canal  near  Birmingham,  50  in  Adurr 
Firth,  40  to  50  off  Southwick.  1  corvette,  19  motor  mine  sweepers, 
5  PT  boats,  and  40  small  vessels  were  at  Newhaven.   No  basic  changes 
as  compared  with  previous  findings  have  occurred,  according  to 
reconnaissance  photographs.   As  before,  the  landing  vessels  are 
left  in  the  harbors  without  any  camouflage.   No  movements  of  these 
vessels  have  been  observed. 

2.  Own  Situation: 

Atlantic  Coast:  ' 

At  0730,  the  3rd  Torpedo  Boat  Flotilla  met  the  sunply 
ship  UCKERFARK  in  quadrant  BF  9917. 

Channel  Coast: 

No  incidents  were  reported. 

Special  Item: 

The  Permanent  Representative  of  the  Commander  in  Chief, 
Navy  reports  from  the  Fuehrer  Headquarters  that  the  Fuehrer  intends 
to  have  15,000  concrete  emplacements  built  for  the  defense  of  the 
west  area.   These  will  require  about  200,000  men.   The  purpose  is 
to  maintain  the  defensive  preparedness  of  these  seotors  against 
enemy  landings  even  in  case  of  heavy  air  raids.  The  Naval  Staff 
is  to  establish  the  order  in  which  the  development  of  the  harbor 
defense  is  to  be  undertaken.   The  Naval  Staff  Operations  Division 
is  of  the  opinion  that  the  Naval  Staff  can  do  this  only  if  projects 
already  under  construction  are  unaffected  by  this  measure.  Groups 
North  and  'Test  are  requested  to  submit  priority  lists  for  their 
respective  areas  not  later  than  on  the  morning  of  12  Aug.  For  copy 
of  the  order  see  l/Skl  I  op  19630/42  Gkdos.  in  War  Diary,  Part  C, 
Vol.  X. 


-119- 


CONFIDENTIAL 
11  Aug.  1942 

III.  North  Sea,  Norway.  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation; 

In  the  evening  air  reconnaissance  spotted  a  northbound 
convoy  of  19  ships  off  Lowestoft.  British  air  reconnaissance  over 
the  North  Sea  was  not  very  active. 

Own  Situation: 

Bad  weather  partly  interrupted  convoy  operations.  Patrol 
positions  were  not  occupied.   Except  for  a  few  ground  mines  swept, 
no  incidents  were  reoorted. 

2.  Norway.  Arctic  Ocean: 

Enemy  Situation: 

Convoy  P^  18  was  not  intercepted  today  either.  A  sub- 
marine reported  weak  sound  location  in  quadrant  AB  3298  at  1740. 
The  submarine  assumes  the  presence  of  a  destroyer  or  a  patrol  ves- 
sel. A  press  report  from  Washington  states  that  a  convoy  with 
materiel  has  safely  arrived  in  a  harbor  of  northern  Russia. 

This  report  seems  to  be  meant  for  deceptive  purposes 
since  it  does  not  contain  any  details. 

Own  Situation: 

On  10  and  11  Aug.  numerous  single  enemy  planes  were  active 
over  the  northern  and  western  coasts  of  Norway.  Convoy  operations 
proceeded  as  scheduled,  without  incident. 


IV.   Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea 

1.  Enemy  Situation: 

According  to  a  Finnish  report,  Russian  forces  are  sweeping 
mines  in  the  fairway  north  of  Kronstadt.   The  4  destroyers  reported 
in  Kronstadt  belong  to  the  STOROSHEVOY  class. 

2.  Own  Situation: 

3  ground  mines  were  swept  in  the  Baltic  Sea  entrances. 

The  transfer  of  the  LUETZOW  under  escort  of  forces  of  the  Command- 
ing Admiral,  Defenses,  Baltic  Sea  is  proceeding  according  to  plan. 
At  1930  the  vessels  were  at  the  latitude  of  Copenhagen.   The  LUETZOW 
reports  limited  operational  readiness.   Her  maximum  continuous  speed 
is  24  knots. 

In  the  night  of  10  Aug.  some  20  enemy  planes  flew  over  northern 
Schleswig  and  the  Danish  Islands.  Aerial  mines  were  probably  dropped 
on  shipping  routes  in  the  Kiel  Bay  and  in  the  Baltic  Sea  entrances. 
No  fighter  successes  were  reported.   For  details  see  Telegram  0720. 


-120- 


CONFIDENTIAL 
11  Aug.  1942 

Minefields  "Seeigel  XXVI"  and  "Seeigel  XXVIII"  in  the  Gulf  of  Finland 
have  been  completed  according  to  plan. 

Group  North  interprets  the  lively  mine-sweeping  activity  in  the 
Kronstadt  Bay  as  an  indication  that  the  enemy's  ships  are  ready  to 
sail.   Group  North  is  of  the  opinion  that  Russian  naval  warfare  has 
taken  on  a  more  offensive  character  as  compared  to  last  year  in 
spite  of  less  freedom  of  movement.   In  this  connection,  Group  North 
refers  to  the  Russian  break  through  the  Vlgrund  minefield  with  the 
help  of  long-range  fighters.   Since  effective  support  of  our  naval 
forces  by  planes  depends  on  the  situation  at  the  Northern  Army  Group, 
and  since  the  Finnish  PT  boats  are  oil,  can  be  used  only  to  a  limited 
extent,  and  are  often  out  of  commission,  Group  North  renews  its  re- 
quest for  withdrawal  of  small  coastal  mine  vessels  and  Italian  sub- 
chasers from  Lake.  Ladoga.   The  present  assignment  of  these  vessels 
to  coastal  patrol  service  does  not  utilize  their  qualities  as  of- 
fensive weapons  and  results  in  a  waste  of  valuable  engine  hours. 
The  strong  armed  "Faehre  Ost"  force  affords  better  protection  against 
a  Russian  landing  in  Lake  Ladoga  than  these  vessels.   The  vessels 
can  only  be  transferred  singly.   During  this  transfer,  which  will 
take  at  least  3  weeks,  the  "Faehre  Ost"  force  can  be  made  fully 
ready  for  action.   Group  North  adds  that  it  is  making  tentative 
preparations  for  the  temporary  transfer  of  the  6th  PT  Boat  Flotilla, 
about  which  the  Naval  Staff  reserved  decision.  For  copy  of  the 
corresponding  directives  of  Group  North  to  the  Commander,  PT  Boats 
and  the  Commander,  Mine  Sweepers,  Baltic  Sea  see  Telegram  1548. 
The  main  base  for  the  PT  Boat  Flotilla  could  be  Reval  or  Helsinki. 
The  decision  is  to  be  made  by  the  Commander,  Mine  Sweepers,  Baltic 
Sea,  in  agreement  with  the  Naval  Liaison  Staff,  Finland  and  the 
Commanding  Admiral,  Baltic  Countries. 


V.    Submarine  Warfare 

1.  Enemy  Situation: 

Reconnaissance  planes  were  very  active  over  the  Bay  of 
Biscay.  An  unsuccessful  depth  charge  attack  was  made  on  an. inbound 
submarine  140  miles  north  of  Cape  Ortegal. 

2.  Own  Situation: 

A  BV  138  plane  is  scheduled  to  make  an  attempt  at  refuel- 
ing submarine  U  "252"  off  the  Olga  Strait  on  13  Aug. 

Operations  against  the  inbound  convoy  in  the  North  Atlantic  were 
broken  off.  Although  unfavorable  weather  conditions  and  strong 
naval  and  air  escorts  made  the  operation  extremely  difficult,  the 
results  are  quite  satisfactory.   Unfortunately,  2  or  3  boats  are 
presumed  to  be  lost  (submarines  U  "210",  "379",  and  probably  "335"). 

In  connection  with  the  operation  against  ship  traffic  between  England 
and  America,  Group  "Loss",  consisting  of  11  submarines,  will  take 
up  a  patrol  line  from  quadrants  AL  1955  to  AL  8165.   Starting  with 
1200  on  19  Aug.,  the  submarines  are  to  observe  radio  silence,  except 
for  tactical  messages.   No  successes  have  been  reported  by  submarines 
operating  off  the  American  coast  and  the  West  Indies. 


-131- 


CONFIDENTIAL 
11  Aug.  1942 

Of  the  submarines  in  the  South  Atlantic,  submarine  U  "130"  reports 
8 inking  the  tanker  MIHLO  (7,455  GRT)  in  quadrant  ES  5198.   Submarine 
U  "109"  reports  that  she  sank  the  tanker  VTMEIRA  (5,728  GRT)  and 
took  the  captain  aboard. 

The  disposition  of  submarines  in  the  western  Mediterranean  in  accord- 
ance with  the  Naval  Staff  directive  has  produced  a  first-rate  result. 
Submarine  U  "73"  (Lieutenant  Rosenbaum)  scored  4  hits  on  the  aircraft 
carrier  EAGLE  proceeding  in  an  eaatbound  force  in  quadrant  CH  9118. 
To  judge  from  sinking  sounds,  the  ship  must  have  been  sunk. 

In  the  eastern  Mediterranean,  submarine  U  "83"  sighted  4  cruisers 
and  10  destroyers  on  a  westerly  course  in  quadrant  CP  5424.   An 
attack  by  the  submarine  was  unsuccessful.   For  further  reports  see 
supplement  to  the  submarine  situation  in  War  Diary,  Part  B,  Vol.  IV. 


XL» Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

During  the  day  our  planes  carried  out  reconnaissance 
flights  and  raids  on  towns  in  England.   Strong  forces  were  employed 
in  night  raids  on  Eastbourne,  Wexhill,  and  Derby.   165  enemy  in- 
cursions over  German-controlled  territory,  100  of  which  were  over 
the  Reich  area,  where  11  planes  were  shot  down.   The  main  target 
was  Mainz.   For  details  of  the  heavy  damage  caused  in  Mainz  and 
Wiesbaden  see  daily  situation  report. 

80  to  100  demolition  bombs  were  dropped  on  Le  Havre.   No  damage  has 
as  yet  been  reported. 

2.  Mediterranean  Theater; 

Throughout  the  day  contact  was  maintained  with  the  strong 
enemy  force  of  aircraft  carriers,  battleships,  cruisers,  destroyers, 
and  steamers,  proceeding  eastward  in  the  western  Mediterranean. 
Bombers  and  torpedo  planes  were  sent  into  action.  According  to  a 
preliminary  report,  2  aircraft  carriers  and  1  cruiser  were  hit  by 
aerial  torpedoes  or  bombs.   Another  warship  wa6  set  on  fire  by 
bombs.   A  steamer  was  hit  by  an  aerial  torpedo. 

Fighter  attacks  on  Malta  failed  to  produce  any  results  of  importance. 
Fighter-bomber 8  of  the  Air  Command,  Africa  scored  well-plaoed  hits 
during  their  attaok  north  of  Alamein. 

3.  Eastern  Front: 

100  enemy  planes  were  shot  down  on  10  Aug.  and  60  on  11 
Aug.  Reconnaissance  activity  is  reported  from  the  Black  Sea.   For 
results  see  Enemy  Situation,  Black  Sea. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1*   Enemy  Situation,  Mediterranean: 

The  ARGUS  was  located  in  Gibraltar.  At  0800  our  air 

-122- 


CONFIDENTIAL 
11  Aug.  1942 

reconnaissance  sighted  the  enemy  force  which  had  been  located  on 
10  Aug^  It  was  heading  east  probably  in  3  groups.  An  advance 
escort  group  consisting  of  1  carrier,  4  cruisers,  7  destroyers,  and 
1  steamer  was  located  some  72  miles  north  of  Algiers  at  1245.  The 
main  group  of  3  battleships,  probably  including  the  RODNEY  and  the 
NELSON,  3  aircraft  carriers,  probably  including  the  WASP,  some  20 
to -25  «cruisere  and  destroyers,  and  about  20  steamers  was  proceeding 
west  of  the  advance  escort  group.  An  escort  group  of  6  destroyers 
proceeding  south  of  the  main  group  was  located  some  75  miles  north- 
west of  Algiers. 

Interpretation  of  photographs  showed  the  major  part  of  the  force, 
i.e.,  2  battleships,  3  aircraft  carriers,  including  the  FURIOUS  and 
the  WASP,  4  light  cruisers,  11  destroyers,  10  steamers,  and  1  tanker 
71  miles  north  of  Algiers  at  1425.  Proceeding  on  a  different  route 
were  1  aircraft  carrier,  1  vessel  presumed  to  be  a  battleship,  2 
cruisers,  15  destroyers,  and  8  steamers.   It  was  in  this  group  that 
the  aircraft  carrier  EAGLE  was  probably  sunk  at  1315. 

At  1807  the  apparently  reunited  force  of  3  carriers,  2  battleships, 
6  cruisers,  20  destroyers,  and  21  steamers  was  86  miles  north-north- 
east of  Algiers. 

At  1955  an  aircraft  carrier  with  5  cruisers  or  destroyers  and  1 
steamer  were  reported  proceeding  on  a  southwesterly  course  77  miles 
north  of  Algiers.   This  was  evidently  a  damaged  aircraft  carrier 
which  had  turned  back  under  escort.  The  major  part  of  the  force, 
i.e.  40  to  50  vessels,  was  seen  for  the  last  time  at  2120  while  pro- 
ceeding at  15  knots  on  a  7O0  course  114  miles  northeast  of  Algiers. 

4 

In  the  night  of  10  Aug.  radio  intelligence  intercepted  messages  from 
enemy  cruisers  about  150  miles  east-southeast  of  Malta.  Reconnais- 
sance carried  out  in  the  morning  was  unable  to  determine  whether 
the  vessels  had  entered  Valletta,  since  the  harbor  was  at  that  time 
partly  oovered  by  a  smoke  screen.  Consequently,  the  radio  intel- 
ligence statement  to  this  effect  cannot  be  considered  reliable. 

The  eastern  Mediterranean,  too,  was  the  scene  of  lively  activity. 
A  force  of  4  cruisers  and  10  destroyers  was  proceeding  westward  150 
miles  north  of  Port  Said  (see  Submarine  Warfare).  According  to  an 
unconfirmed  intelligence  report,  several  loaded  steamers  are  re- 
ported to  be  in  Alexandria  from  where  they  are  scheduled  to  depart 
for  Malta  on  12  Aug.   Reconnaissance  over  Alexandria  during  the. 
morning  observed  1  destroyer,  6  small  warships,  and  13  steamers  in 
that  harbor. 

Submarines  were  found  to  be  very  active  off  the  Italian  harbors. 
The  Commanding  General,  Armed  Forces  South  considers  that  the 
operations  in  progress  aim  at  something  more  than  merely  supplying 
Malta. 

2.   Own  Situation.  Mediterranean: 

Axis  measures  against  the  enemy  convoy  have  begun.  For  air 
attacks,   5  bomber  groups  and  the  aerial  torpedo  training  unit 
from  Grossetto  are  available  in  Sicily.   Other  details  are  not  known 
to  the  Naval  Staff. 

In  the  night  of  10  Aug.  bomb  fragments  set  an  Italian  PT  boat  on 
fire  in  Marsa  Matruh.  The  vessel  was  beached.  On  11  Aug.  an 


-123- 


CONFIDENTIAL 
11  Aug.  1942 

Italian  landing  craft  struck  a  mine  in  the  harbor  of  Marsa  Mat run 
but  is  still  afloat. 

On  the  basis  of  the  report  of  the  Italian  Admiral  at  the  Naval  Staff 
on  mine  laying  in  French  territorial  waters  off  Cape  Bon,  the  Naval 
Staff  transmitted  its  approval  and  requested  that  it  be  considered 
whether  setting  the  mines  for  at  least  73  hours  might  not  ensure 
greater  protection  and  advantages. 

The  German  Naval  Command,  Italy  has  been  notified  to  this  effeot 
(see  Telegram  1717). 

Referring  to  the  unsuccessful  attempts  by  the  Navy  to  have  the 
Italians  lay  a  permanent  minefield  in  the  Strait  of  Sicily,  the 
Armed  Forces  High  Command,  Operations  Staff  asked  the  German  General 
at  the  Italian  Armed  Forces  Headquarters  on  7  Aug.  to  emphasize 
jointly  with  the  German  Naval  Command,  Italy  at  the  Italian  High 
Command  that  the  suggestions  and  demands  of  the  German  Navy  also 
definitely  represent  the  desire  of  the  German  Armed  Forces  High  Com- 
mand. He  should  point  out  to  the  Italian  High  Command  the  import- 
ance of  this  measure  and  the  undiminished  willingness  on  the  part 
of  the  Germans  to  aid  the  Italians.  It  is  suggested  that  in  order 
to  achieve  quick  results  it  might  be  advisable  for  the  German  General 
at  the  Italian  Armed  Forces  Headquarters  to  mention  only  mining  of 
enemy-controlled  area,  and  not  for  the  time  being,  of  the  territorial 
waters  off  the  coast  of  Tunisia,  to  which  the  Italians  are  known  to 
be  opposed. 

In  the  meantime  this  last  point  has  lost  its  import- 
ance. 

3.  Transport  of  Supplies  to  North  Africa; 

Transport  of  supplies  from  Italy  and  Greece  to  North  Africa 
and  along  the  North  African  coast  proceeded  as  planned. 

4.  Area  Naval  Group  South: 
Aegean  Sea; 

Nothing  to  report. 

Black  Sea; 

Enemy  Situation; 

Air  reconnaissance  reports  that  2  steamers  departed  from 
Novorossisk  and  2  tankers  from  Tuapse. 

Own  Situation: 

During  the  second  torpedo  operation  of  the  1st  PT  Boat 
Flotilla  off  the  Caucasian  coast  in  the  night  of  10  Aug.,  3  PT  boats 
southeast  of  Gelendzhik  fired  4  torpedoes  on  an  unescorted  tanker 
and  missed.  After  the  attack  the  tanker  was  temporarily  beached 
but  was  not  attacked  again. 

The  mine-sweeping  operation  between  Mariupol  and  Yeisk  is  under  way. 
1  landing  craft  and  1  ferry  sank  in  the  course  of  this  operation  off 

-134- 


CONFIDENTIAL 
11  Aug.  1942 

Yeisk  in  the  close  vicinity  of  the  coast  on  10  Aug.  as  a  result 
of  mine  hits.  Convoy  operations  proceeded  as  scheduled. 

In  view  of  the  rapid  progress  of  Army  operations  in  the  direction 
of  the  Caspian  Sea,  Group  South  considers  it  necessary  that  a  naval 
liaison  officer  be  sent  immediately  to  the  let  Panzer  Army  in  order 
to  safeguard  the  interests  of  the  Navy  and  to  prepare  the  transfer 
of  naval  forces  to  the  Caspian  Sea  in  time.   (See  Telegram  1110.) 

The  Naval  Staff  Quartermaster  Division  and  the  Naval  Officer  Per- 
sonnel Division  have  taken  up  the  matter. 


VIII.  Situation  East  Asia 

According  to  a  U.S.  Navy  Department  communique,  U.S.  forces 
have  landed  on  the  Solomon  Islands.   During  the  landing  operations 
1  U.S.  cruiser  was  sunk,  while  2  other  cruisers,  2  destroyers,  and 
1  transport  were  damaged.  Numerous  enemy  vessels  were  destroyed 
and  many  surface  vessels  were  put  out  of  commission.   The  attack 
aims  at  driving  the  Japanese  'out  of  the  Tulagi  area  and  securing  the 
communication  routes  to  Australia  and  New  Zealand.   The  communique 
states  that  the  surprise  landings  were  carried  out  according  to  plan, 
The  Japanese,  however,  quickly  launched  a  counterattack.  Heavy 
fighting  is  still  in  progress.  Considerable  losses  must  be  expected 
on  both  sides. 

According  to  an  American  broadcast,  the  operation  against  Kiska  in 
the  Aleutians  is  completed.  Nothing  can  be  said  about  the  results 
until  the  participating  naval  forces  have  returned  to  their  bases. 


IX.   Armv  Situation 

1.   Russian  Front; 

Army  Group  A: 

The  enemy  countered  the  bombardment  of  the  Taman  Peninsula 
with  heavy  artillery  fire. 

In  the  Kuban  area  our  troops  are  fighting  for  the  possession  of 
Slavyansk.   One  section  of  the  town  has  already  been  taken.  The 
enemy  is  trying  to  attack  Krasnodar  from  the  southern  bank  of  the 
Kuban  River,  which  is  held  by  strong  forces.  A  counterthrust  has 
been  launched.   The  1st  Panzer  Army  has  extended  the  bridgehead  near 
Maikop.  Another  bridgehead  was  established  across  the  Byelaya  River 
near  Abocheskaya.  Cherkessk  has  been  seized.  Advance  detachments 
are  pushing  on  toward  the  mountains. 

The  III  Army  Corps  advanced  in  the  direction  of  Elista  after  crossing 
the  undamaged  bridge  over  the  Manyoh  River.  . 

Army  Group  B: 

The  battle  of  encirclement  west  of  Kalach  has  ended.   The 
remnants  of  the  62nd  and  the  1st  Panzer  Armies,  pushed  into  a  small 


-125- 


CONFIDENTIAL 
11  Aug.  1942 

area,  were  either  slaughtered  or  taken  prisoner.  Enemy  attacks  north 
of  Voronezh  and  south  of  Yelets  continue. 

Central  Army  Group; 

In  the  Byelev  area  our  divisions  have  set  out  in  northerly 
direction  to  mop  up  the  enemy  in  the  Sukhinichi  area.  Movements  of 
the  right  wing  and  the  center  are  in  accordance  with  plans.  On  the 
left  wing,  our  offensive  encountered  a  heavily  mined  fortified  ter- 
rain.  Enemy  troops  continue  their  heavy  attacks  south  of  Rzhev. 
Enemy  tanks  again  succeeded  in  breaking  through  our  lines.  North  of 
Rzhev  strong  enemy  forces  have  launched  an  attack.   Fighting  is  still 
in  progress.  Lack  of  air  support  makes  our  situation  difficult. 

Northern  Army  Group: 

Local  fighting  is  reported. 

2.  Finnish  Front:  *  g 
No  fighting  of  importance  occurred. 

3.  North  Africa: 

So  far,  no  report  has  been  received. 


-126- 


CONFIDENTIAL 
12  Aug.    19^2 

Items    of    Political  Importance 

In   connection  with  the   Moscow   conferences   it   is   reported   that   more 
U.C.    officers  have    joined"  General  Bradley's   mission   in   Moscow. 
According    to  an  Italian   report,    the   Americans   have   demanded  the 
right    to   occupy  Siberian  air  bases   as    jump-off   points  for   their 
attacks    on   Japan.      For  further   conjectures    on   this    subject  see 
Political  Review  No.    187,    Paragraph  1. 

The   length   of    the   conference,    in   which  Churchill    seems    definitely 
to  be   participating,  /according   to  all   available    reports,    indicates 
that   the   problems   under  discussion  are   extremely  important.     Germany 
would   do  well   to  realize   that   the  British  and  the   Americans  are 
concentrating    their   efforts   exclusively  on   convincing   Stalin   that 
an   ultimate  Allied  victory  is    inevitable.      Russia's    offensive 
strength   on   the    sector    of    the   Central  Army  Group  continues   un- 
broken  and   indicates    that   the   Russians   do  not   yet   intend  to  give 
up. 

The   international   press   continues   to  discuss   the   problem  of   the 
second  front   in  Europe   without   bringing  forth  any  new   viewpoints. 
At   the   present  moment,    the  discussion   is   focused   on   the    site    of 
the   future    operation.      For   details  see   Political  Review  No.    187, 
Paragraph  2. 

Great  Britain: 

A  report   from  a  diplomatic    source    on  Great   Britain's   domestic 
situation   confirms    the   prevailing    opinion   that   the   country's 
confidence   in  a  final  victory  is   unshaken.      Churchill,   who 
has    lost  much   of  his   popularity,    is    still   considered  irreplaceable. 
Cripps  has   no  influence  whatsoever.      The  food  situation  is   still 
quite    satisfactory  but   there   is   a  great   shortage    of   textiles. 
Communist   propaganda   is   undoubtedly  making  rapid  progress,   but 
so  far  the    menace    is    not  considered  very  great. 

According   to  the  Daily  Telegraph,  *it  is  not   intended  to  call  a 
Parliament   session  for  discussion   of   the  Indian  question.     The 
Communists      in  Britain   and   the    radical   Socialists    in  the  U.S.A. 
have   condemned  the    arrest    of  Gandhi    and  the   Congress    leaders. 
Unrest   continues   in  India  but   so  far  it  has   failed  to  assume 
dangerous   proportions. 

France: 

Laval  spoke  about  the  return  of  50,000  French  war  prisoners  in 
exchange  for  150,000  French  skilled  workers . 

According  to  Swedish  and  Swiss  press  reports,  rumors  about  an 
internal  coup  d'etat  are  circulating  in  Vichy. 


Conference  on  the  Situation  with  the  Chief f  Naval  Staff 

I.   The  Armed  Forces  High  Command,  Operations  Staff  rejected 
the  unjustified  complaint  of  the  African  Panzer  Army  High  Command 
(see  War  Diary  10  Aug.)  by  issuing  the  following  reply: 

According  to  the  Naval  Staff,  it  will  take  10  days  to  unload 

-I27- 


CONFIDENTIAL 
12  Aug.  19i|2 

the  ANKARA,  which  arrived  in  Tobruk  on  6  Aug.  I9I4.2.  The  Naval 
Staff  considers  this  unloading  rate  satisfactory.   Therefore  and 
on  the  .oasis  of  previous  experience,  the  Armed  forces  High 
Command,  Operations  Staff  disagrees  with  the  African  Panzer  Army- 
High  Command  about  the  activity  of  the  naval  command  in  Tobruk. 
Any  special' wishes  are  to  be  taken  up  with  Admiral  Weichold 
in  Africa. 

II.  The  Chief,  Naval  Quartermaster  Division  reports  that  the 
Reich  Commissioner  of  Maritime  Shipping  intends  to  obtain  con- 
trol of  the  tonnage  available  in  unoccupied  French  harbors  through 
direct  negotiations  with  the  French.  All  efforts  of  the  German 
Armistice  Commission,  France  and  of  the  Foreign  Office  in  this 
direction  are  known  to  have  failed  so  far. 

The  Fuehrer  has  decided  that  control  of  maritime  shipping  in  the 
Black  Sea,  claimed  by  the  Reich  Commissioner  of  Maritime  Shipping, 
shall  for  the  time  being  remain  with  the  Navy. 

The  Navy  must  realize  that  the  demands  of  the 
Reich  Commissioner  of  Maritime  Shipping  will  not 
be  satisfied  until  the  Navy  has  been  stripped 
of  any  respbnsibllity  for  maritime  shipping  and 
has  lost  the  last  vestige  of  influence  in  this 
■  sphere.   The  farther  the  Navy  retreats  from  its 
basic  demand  for  naval  control  of  both  the 
Merchant  Marine  and  the  Navy  for  the  duration  of 
the  war,  the  more  certain  it  is  that  the  civilian 
authorities  will  try  to  seize  control  of  matters 
closely  related  to  both, 

III.  The  Chief  of  the  Foreign  Affairs  Section,  Naval  Staff 
Operations  Division  reports  that  the  German  Embassy  in  Ankara 
was  directed  to  draw  the  attention  of  the  Turkish  Government 
to  the  problem  of  merchant  shipping  protection  within  the 
Turkish  territorial  waters.  The  Turkish  Government  replied  that 
the  respective  commands  have  been  ordered  to  fire  on  any  vessel 
launching  an  attack  in  Turkish  territorial  waters.  For  details 
see  War  Diary,  Part  C,  Vol.  VIII. 

IV.  The  Chief,  Naval  Intelligence  Division  adds  to  his  report 
of  11  Aug.  a  discussion  of  the  presumable  reaction  of  the 
Soviet  fleet  to  a  further  advance  of  the  German  Army  and  to  the 
impending  loss  of  its  last  bases.   See  War  Diary,  Part  C,  Vol.  XlVa. 

In  a  Very  Restricted  Circle: 

V.  The  Naval  Liaison  Officer  to  the  Army  General  Staff  submits 
his  report  of  8  Aug.  on  the  Army  situation  (see  War  Diary  8  Aug.) 
to  the  Chief  of  Staff,  Naval  Staff. 

VT.  The  Chief,  Operations  Branch,  Naval  Staff  Operations  Division 
reports  that  in  contrast  with  the  views  held  by  the  Naval  Staff 
with  regard  to  the  submarine  operation  off  Cape  Town  (see  War  Diary 
10  Aug.),  the  Commanding  Admiral,  Submarines  considers  it  necessary 
to  permit  the  outbound   submarines  to  attack  enemy  vessels  as  far 
as  I50  S,  so  that  as  many  enemy  ships  can  be  sunk  as  possible.  In 
his  opinion,  there  is  no  reason  to  fear  that  sinkings  occurring 
as  far  south  as  I50  S  might  affect  enemy  shipping  in  the  Cape  Town 
area.  The  Commanding  Admiral,  Submarines  has  agreed  to  the  Naval 
Staff's  demand  for  absolute  radio  silence. 


-I28- 


CONFIDENTIAL 


12  Aug.    191+2 


The  arguments  of  the  Commanding  Admiral,  Submarines  have  failed 
to  convince  the  Naval  Staff.  The  Naval  Staff  views  the  planned 
submarine  operation  off  Cape  Town  as  similar  to  operation  MPau«r 
kenschlag",  and  therefore  special  measures  are  required  to  ensure 
its  success.  For  this  reason  the  Naval  Staff,  after  having  re- 
examined the  plan,  is  unwilling  to  alter  the  stipulation  that 
the  submarines  remain  unnoticed  after  crossing  the  equator,  ex- 
cept when  there  is  a  definite  chance  for  an  attack  on  battleships 
or  aircraft  carriers. 

For  copies  of  the  telegrams  to  and  from  the  Commanding  Admiral, 
Submarines  see  l/Skl  I  u  1555/1|2  Gkdos.  Chefs,  in  War  Diary, 
Part  C,  Vol.  IV. 


Special  Items; 

I.   On  7  Aug.  G 
ope  r  a t  i  on  s  orde 
The  purpose  is 
station  in  the 
Greenland.  A  w 
ship  will  leave 
Arctic  Ocean, 
possible.  The 
the  vicinity  of 
Spitsbergen. 


roup  North  submitted  to  the  Naval  Staff  Its 
r  to  the  weather  ship  HERMANN  for  operation  "Holzaugew( 
to  establish  a  meteorological  service  and  a  radio 
vicinity  of  Bismarck  Cape  on  the  eastern  coast  of 
eather  buoy  is  to  be  laid  about  half-way.  The 

the  Narvik-Harstad  area  as  directed  by  the  Admiral, 
The  destination  should  be  reached  by  25  Aug.,  If 
HERMANN  will  remain  during  the  winter  either  In 

Bismarck  Cape  or  of  the  northeastern  tip  of 


The  Naval  Staff  points  out  that  It  would  be  wiser  for  the  HERMANN 
to  camouflage  herself  as  an  Icelandic  than  as  a  Norwegian  vessel 
In  case  enemy  planes  should  fly  over  the  ship. 

4 

II.  Concerning  the  development  of  harbor  defenses  in  the  west 
area  (see  War  Diary  11  Aug.),  the  Naval  Staff  has  transmitted 
the  following  priority  list  to  the  Permanent  Representative  of 
the  Commander  in  Chief,  Navy  at  the  Fuehrer  Headquarters  and  to 
the  Naval  Representative  on  the  Armed  Forces  High  Command,  Oper- 
ations Staff: 


1.    Large  harbors: 
Small  harbors: 


Cherbourg,  Le  Havre,  Hook  of  Holland 

Caen,  Fecamp,  St.  Malo,  Granville,  ■ 
Lezardrieux 


2. 


Large  harbors:  Brest,  Lorient,  St.  Nazaire,  La  Palllce, 
Gironde  estuary,  Flushing  and  the  Scheldt 
estuary 

Small  harbors:  Morlalx,  l'Aber-Vrach,  Concarneau,  Les 
Sables,  D'Olonne 

Large  harbors:  Boulogne,  Calais,  Dunkirk,  Ostend, 
I jmuiden 


k* 


Small  harbors: 
Small  harbors : 


Le  Treport,  Zeebrugge 

Den  Holder,  Bayonne,  Arcachon,  St.  Jean- 
de-Luz,  as  well  as  all  the  other  small 
harbors  covered  by  the  defense  development 
project  for  the  entire  coast  front. 


-I29- 


CONFIDENTIAL 
12  Aug.    I9I4.2 

Situation   12   Aug.    I9U2 

L        War   in  Foreign  Waters 

1.  Enemy  Situation: 

North  Atla'ntlc  ; 

According  t 0  an  intelligence  report  from  Canada  dated 
29  Jul.,  most  of  the  grain  shipments  during  June  and  July  went, 
to  Russia  and  to  the  armies  in  the  Near  East,  Iceland,  and  Alaska; 
quite  a  number  of  Russian  ships  loaded  with  grain  have  left  for 
harbors  in  Siberia,  and  the  loading  is  still  going  on.   The  next 
large  convoy  of  .ships  carrying  wheat  and  flour  will  depart  from 
St.  Lawrence  River  harbors  for  England  approximately  between  llj. 
and  19  Aug.  At  least  26  to  29  steamers  will  be  loaded  with 
nothing  but  grain.   Some  of  them  are  already  arriving  to  start 
loading.  These  ships  will  be  joined  by  freighters  carrying 
lumber,  ore  (Newfoundland),  metals,  etc.,  and  will  depart  under 
a  particularly  heavy  escort  without  U.S.  shipments.  At  New- 
foundland the  ships  will  presumably  be  joined  by  9  or  1°  ore 
freighters.  ' 

Indian  Ocean: 

According  to  an  intelligence  report  of  3  Aug.  re- 
ceived via  Vienna,  6  (Tr.  N.:  This  number  was  originally  66, 
but  was  changed  to  6  by  a  marginal  note  on  2I4.  Oct.  I9I4.2.) 
American  ships  carrying  3I1, 000  tons  of  ammunition,  tanks,  and 
planes  for  Palestine,  Egypt,  and  Russia  entered  Basra  between 
19  and  26  Jul.  Early  in  July  the  i|th  U.S.  Tank  Brigade  destined 
for  Egypt  landed  in  Basra.   The  road  between  Basra  and  Kowelt  is 
not  yet  completed.   New  highways  are  being  built  from  Eagdad  to 
Basra,  Mosul,  and  Kirkuk.   The  second  railway  line  between  Eagdad 
and  Basra  is  under  construction. 

2.  Own   Situation: 

Radiogram  O53O  contains    the  information   that   the  TANNENFELS 
is    carrying    supplies  from  Yokohama   for    ship   "10"   and   other  vessels. 

Via   Radiogram  2309   all   vessels   in  foreign  waters    are   being   notified 
that  from  now    on  the    Japanese  Navy  wishes   all  prisoners   to  be  de- 
barked in  Batavia. 

Via   Radiogram  2017  all  vessels   in  foreign  waters  are  being    informed 
that   the  first  departure    of   the  UCKERMAFK  failed  and  that,   as   a 
result,    it   is  possible   to   postpone    the    order   prohibiting  the 
submarines   from  attacking   enemy  vessels    on  route    "Anton". 

Radiogram  O716   contains  further   information   on  the    efforts 
to  influence   Chile's   attitude   in   international  matters.      The 
gradual  weakening    of   her  previous   stand  may  be   attributed  to  the 
following  factors: 

a.  The    President's    loss    of   authority  due    to  his   inactivity 
and  the   resulting  strengthening    of   leftist   power. 

b.  A   tempting  American   offer  to  nationalize  the   Chilean 
copper  mines. 


-I30- 


CONFIDENTIAL 


12  Aug.    19U2 


c. 
war,  in 
circles 


The   fact   that   we.  are   not   fast  enough  in  winning    the 
the   opinion   of   the   Chilean  political   leaders    (military 
have   little   to  say).      Thus,    for   example,    our  failure 


to  conquer  Egypt  has   given 
Chile. 


a  new   impetus   to   our  opponents   in 


The  Naval   Attache    in  Tokyo  is   being   informed  via   Telegram  0230 
that   on   11  Aug.   a  strong   enemy  force  was   located  In  the   western 
Mediterranean   and  that   after   the   sinking    of    the  EAGLE   there  were 
apparently  still   3   carriers,    presumably  Including    the  WASP,    3 
battleships,    among  them  presumably  the   RODNEY  and  the   NELSON, 
and   1  battle   cruiser  with  that  force. 

The   Naval  Staff  has    transmitted  to  Group  West,   Naval   Office 
Bordeaux,   for  distribution   to  the    respective  captains,    sailing 
orders  for    the   blockade-runners   IRENE,   SPICHERN,   BUFGENLAND,    RIO 
GRANDE,    and  BRAKE. 

These   ships   are   to  take   goods   to   Japan.      They  can   depart   during 
the   new-moon  period  in  September.     Group  West   will  determine   the 
date    of  departure  and  will  be   In   command  up   to   3O0  W. 

For    copy  no.  h,   of    the    sailing    orders   see    l/Skl  I   k   1535A2 
Gkdos.   Chefs,   in  War  Diary,    Part   C,    Vol.   I. 


II.      Situation  West  Area 

1.  Enemy   Situation;  ' 

Air  reconnaissance   spotted   lively  convoy  and  steamer 
traffic    in  the  western  part    of   the   English  Channel   and  the 
northern   outlet   of  the.  Bristol  Channel. 

One    of    our   submarines    sighted  a   submerged  enemy   submarine   in  the 
area   off  the   Loire   estuary. 

2.  Own   Situation; 

Atlantic    Coast; 

Mine -detonating   vessels   swept  6  ground  mines    on  route 
"Herz".      I4.  mine  detonations,    presumably  caused  by  self -ignition, 
were    observed  in   the  Gironde   estuary.      3  more   detonations   occurred 
near  lie   d'Oleron   and  lie   de   Re. 

Group  West   reports    that    on   10  Aug.    there  were    repeated  and  partly 
successful  air   attacks    on   in  and   outbound  submarines,    and    the   first 
blockade-runner   to  depart   was    located,   attacked,    and   shadowed 
by  British  reconnaissance  planes,   and  was   thus   forced  to  turn  back. 
The  forces    of  the   Air  Command,   Atlantic   Coast  are   at  present   ao 
weak  that   the   operations    scheduled  at   short  intervals   in   September 
are   jeopardized.      The  blockade-runners   can  leave  for   their  vital 
missions    only  when   the    available   reconnaissance  forces  have  been 
increased,    and  new  forces  have  been  brought   up  to  protect   the 
ships   and  to  fight    enemy  planes.     Group  West   considers   the  alloca- 
tion  of   one   complete  group  of  FW  200' s   and   one   of  Ju  88 's   (the 
latter  as  auxiliary  long-range  fighters)    as   an    indispensable 


-I5I- 


CONFIDENTIAL 
12  Aug.   I9I4.2 

minimum* 

The  Chief,  Naval  Staff  had  submitted  a  similar  re- 
quest to  the  Fuehrer  after  his  return  from  the  in-  v 
spection  tour  in  France.  The  Naval  Staff  will  use 
the  very  serious  threat  to  blockade-runner  traffic 
to  lend  emphasis  to  this  demand. 

No  incidents  occurred  when  the  UCKERMARK  was  being  brought  in. 

Group  West  further  reports  that  the  demand  of  the  Commanding 
Admiral,  Subuarines  for  reinforcement  of  the  escort  forces  of 
the  Commanding  Admiral,  Defenses,  West  in  the  Bay  of  Biscay  (see 
War  Diary  3  Aug.)  cannot  be  fulfilled  unless  an  additional  new 
mine  sweeper  or  torpedo  boat  flotilla  can  be  allocated.  Until 
then,  the  suggestions  made  by  the  Commanding  Admiral,  Submarines 
can  be  followed  only  on  occasion.  Concerning  the  disposition  of 
the  new  mine  sweeper  flotillas  along  the  west  coast,  Group  West 
reports  that  the  bth  Mine  Sweeper  Flotilla  is  operating  In  the 
southern  part  and  the  2nd  Mine  Sweeper  Flotilla  In  the  northern 
part  of  the  Bay  of  Biscay.  By  the  end  of  August  the  2nd  Mine 
Sweeper  Flotilla  will  have  to  enter  the  shipyard.  In  September, 
the  6th  Mine  Sweeper  Flotilla  will  operate  in  the  southern 
part  and  the  8th  Mine  Sweeper  Flotilla  in  the  northern  part  of 
the  Bay  of  Biscay.  By  the  end  of  September  the  8th  Mine  Sweeper 
Flotilla  will  have  to  enter  the  shipyard.  From  October  till 
December  the  6th  Mine  Sweeper  Flotilla  will  be  available  In  the 
southern  part  of  the  Bay  of  Biscay. 

The  3rd  Torpedo  Boat  Flotilla  is  undergoing  a  J-d&j   overhaul 
in  the  shipyard  of  La  Palllce. 

Channel  Coast; 

During  the  enemy  air  raid  on  Le  Havre  in  the  night 
of  11  Aug.  some  property  damage  was  caused  in  the  naval  com- 
munications building.   During  the  day,  numerous  balloons  with 
explosives  attached  were  observed  over  the  areas  of  Dunkirk 
and  Calais. 

At  221+7  naval  and  Army  batteries  fired  on  a  westbound  convoy 
south  of  Ramsgate.   The  effect  was  not  observed. 

Special  Items; 

Group  North  took  up  the  matter  of  detailing  a  naval  liaison 
officer  to  Army  Group  D,  in  accordance  with  the  previous  sugges- 
tion of  Group  West,  which  had  been  rejected.  To  safeguard  the 
interests  of  the  Navy  with  the  Commander  in  Chief,  West,  Group 
North  requests  that  this  suggestion  be  approved,  because  the 
distance  between  headquarters  of  Group  North  and  those  of  the 
Commander  in  Chief,  West  hampers  their  cooperation  considerably 
and  produces  friction  in  the  Netherlands  area,  which  could  be 
eliminated  by  appointing  a  naval  liaison  officer.   (See  Telegram 
12^5.) 

The  Naval  Staff  definitely  endorses  this  suggestion 
while  realizing  that  the  present  shortage  of  per- 
sonnel makes  it  almost  impossible  to  fulfill. 


-I32- 


CONFIDENTIAL 
12  Aug.    I9I4.2 

III*  North  Sea,  Norway,   Arctic   Ocean 

1.  North  Sea; 

Enemy  Situation; 

Air  reconnaissance  observed  only  light  convoy  traffic 
along  the  southeast  coast. 

Own  Situation; 

5  ground  mines  were  swept.   Otherwise  there  is  nothing 
to  report. 

2.  Norway,  Arctic  Ocean 

Enemy  Situation; 

The  lively  air  activity  over  the  west  coast  on  10  Aug. 
was  evidently  a  systematic  search  for  the  LUETZOVV.  Radio  in- 
telligence failed  to  yield  further  details  concerning  the  re- 
sults of  this  reconnaissance. 

No  tactical  results  were  obtained  from  the  reconnaissance 
carried  as  far  -as  the  southern  tip  of  Ireland  and  north  of 
Iceland  up  to  23°  W. 

Bad  weather  prevented  photographic  reconnaissance  of  Reykjavik 
which  was  planned  in  search  of  convoy  PQ  18.  Visual  reconnaissance 
failed  to  spot  any  enemy  forces. 

Own  Situation; 

On  10  Aug.  the  Russian  battery  on  the  Rybachl  Peninsula 
unsuccessfully  fired  on  land  targets.  The  attack  was  met  by 
counterfire.  All  3  torpedoes  fired  on  an  eastbound  convoy  in 
quadrant  AC  814-59  missed  their  target.  The  submarine  chase,  in 
the  course  of  which  110  depth  charges  were  dropped,  seems  to 
have  been  unsuccessful.   On  11  Aug.  Russian  planes  launched  a 
low-level  attack  on  Gamvik.  A  reconnaissance  plane  flew  over. 
Bergen  and  the  Grlmstad  Fjord  on  11  Aug. 

The  steamer  GEORGE  L.  M.  RUSS  sank  after  an  explosion  in  quadrant 
AN  3l6l»  The  captain  assumes  that  she  was  hit  by  a  torpedo.  The 
steamer  BOLTENHAGEN  sank  in  quadrant  AN  3513  as  a  result  of  a 
mine  hit.   The  shipping  channel  of  Krlstiansand  South  is  closed 
as  far  as  Stavanger. 

Group  "Rebelkoenig"  has  been  ordered  to  shift  its  operations 
area  by  155  miles  in  the  direction  of  80°  proceeding  at  a  speed 
of  approximately  9  knots.   The  order  was  based  on  the  assumption 
that  convoy  PQ  18,  if  at  all  en  route,  must  have  passed  the  line 
between  Bear  Island  and  Spitsbergen.   Since  visibility  has  im- 
proved enough  to  permit  fairly  reliable,  although  by  no  means 
definite  and  complete  reconnaissance,  it  is  becoming  doubtful 
whether  convoy  PQ  18  actually  was  located.  Under  the  circumstances, 
the  press  report  about  the  arrival  of  a  convoy  In  a  harbor  of  north- 
ern Russia  (see  War  Diary  11  Aug.)  may  actually  be  authenic. 


-I53- 


CONFIDENTIAL 
12   Aug.    191+2 

IV.   Skagerrak,   Baltic   Sea  Entrances,   Baltic   Sea 

1.  Enemy  Situation: 

According  to  an  intelligence  report  from  Norway,  5 
Norwegian  ships  are  in  Ooeteborg;  two  of  them,  the  DICTO  and 
the  LIONEL,  have  Britishers  aboard.   An  attempt  will  probably 
be  made  to  have  the  ships  depart  one  by  one.   One  ship  and  3 
new  Norwegian  vessels  are  in  Malmoe.  These  will  probably 
depart  first. 

2.  Own  Situation: 

A  Danish  fishing  boat  sank  west  of  Samsoe,  after  a 
British  aerial  mine  exploded  in  the  net.  The  weather  ship 
HERMANN  departed  for  Norway,  en  route  for  operation  "Holzauge", 
Convoy  and  transport  operations  in  the  area  of  the  Commanding 
Admiral,  Defenses,  Baltic  Sea  proceeded  according  to  plan. 
The  transfer  of  the  LUETZOlft  has  been  completed. 

The  naval  situation  in  the  area  of  the  Commander,  Mine  Sweepers 
Baltic  Sea  remained  unchanged. 

1 

The  Commander,  PT  boats  declared  that  a  number  of  preliminary 
measures  are  required  if  8  vessels  of  the  6th  PT  Boat  Flotilla 
are  transferred  to  the  Gulf  of  Finland  without  a  tender.  For 
details  see  Telegram  O9I+O.  The  Commander,  PT  boats  reports 
that  preparations  for  the  planned  operation  of  the  6th  PT 
Boat  Flotilla  in  the  west  area  are  either  completed  or  under 
way. 

Group  North  has  transmitted  to  the  Naval  Staff  a  report  of  the 
Commander,  Mine  Sweepers,  Baltic  Sea,  stating  that  the  Finnish 
High  Command  is  not  so  strongly  opposed  to  the  transfer  of  the 
small  coastal  mine-laying  craft  and  the  Italian  subchasers 
from  Lake  Ladoga  as  is  assumed  by  higher  commands.   At  the  con- 
ference in  Kotka,  the  commander  of  the  1st  Air  Force  likewise 
admitted  the  uselessness  of  keeping  these  vessels  in  Lake 
Ladoga.  The  Commander,  Mine  Sweepers,  Baltic  Sea  suggests 
that  the  Commanding  Admiral,  Defenses,  Baltic  Sea  report  on 
the  matter  to  the  Finnish  Marshal  personally.  Group  North  ■ 
requests  approval  of  this  suggestion  (see  Telegram  I5I+8). 

The  Naval  Staff  will  achieve  its  objective  without  following 
this  suggestion,  which  appears  inadvisable  since  the  Armed 
Forces  High  Command  Operations  Staff  is  already  working  on  the 
matter. 


V.   Submarine  Warfare 

1.    Enemy  Situation: 

Reconnaissance  over  the  Bay  of  Biscay  was  particularly 
active.   At  2208  a  British  vessel  was  located  60  miles  north- 
west of  Bordeaux. 

A  broadcast  reporting  the  sinking  of  an  American  steamer  by  a 
submarine  off  Florida  was  intercepted  from  the  American  cnast 

-13U- 


CONFIDENTIAL 

12  Aug.    19^2 

area.  Submarine  sighting  reports  were  repeatedly  intercepted 
from  off  the  West  Indies. 

•  2.    Ovm  Situation; 

For  the  operation  of  group  "Nebelkoenig"  see  Situation 
Arctic  Ocean. 

No  incidents  occurred  in  the  North  Atlantic.  In  the  western 
Atlantic,  submarine  U  "86"  sank  the  auxiliary  sailing  vessel 
WAWALOMA  in  quadrant  CC  I4.5  on  6  Aug.  In  the  West  Indies,  sub- 
marine U  n15S"  sank  the  Dutch  steamer  CURACAO  (383  GRT),  and 
submarine  U  "66"  sank  the  steamer  ROSAWIE  (about  5,000  GRT). 
The  captain  was  taken  aboard.  No  reports  have  been  received 
from  the  submarines  in  the  South  Atlantic. 

Mediterranean; 

The  British  Admiralty  has  admitted  the  loss  of  the 
EAGLE.  No  further  successes  have  so  far  been  reported  in 
connection  with  submarine  attacks  on  that  convoy. 

In  the  eastern  Mediterranean,  submarine  U  "77"  sank  5  more 
sailing  freighters. 

3#    Special  Items; 

Due  to  the  fact  that  the  UCKERMARK  has  re-entered  port, 
the  order  prohibiting  submarines  to  attack  enemy  vessels  on  route 
"Anton"  is  being  temporarily  revoked  for  the  sector  south  of  20  N. 
In  this  sector,  the  submarines  are  free  to  attack  until  further 
notice  as  far  south  as  50  S  and  as  far  east  as  20°  W  between  0°  and 
5°  S.  For  the  time  being,  the  submarines  are  still  prohibited 
from  attacking  north  of  20°  N.  For  information  sent  to  the 
Commanding  Admiral,  Submarines,  with  copy  to  Group  West,  see 
Telegram  1719. 


VT.  Aerial  Warfare 

■ 

1.  British  Isles   and  Vicinity; 

On  the   night   of   11  Aug.   and  on  12  Aug.  a   few   of   our 
planes   raided  various   English  towns j    some   effects   were   observed. 
In  the   night   of    12  Aug.  bombs   were  dropped  on  Edinburgh  and  a 
neighboring  airfield.     In  the   same  night  enemy  planes  carried 
out  some   100  incursions   into  the  Reich  area,   again  concentrating 
their   attacks    on  Mainz.      Cologne   and   Muenchen-Gladbach  were  also 
raided. 

2.  Mediterranean  Theater; 

According  to  preliminary  oral  reports,  1+   waves  of 
German  planes  attacked  the  convoy  located  in  the  western  Mediter- 
ranean between  0922  and  20I4.8.  Hits  were  reported  on  1  aircraft 
carrier,  I4.  to  6  cruisers,  li|.  steamers,  and  1  tanker.  Of  the 
vessels  hit,  5  merchantmen  are  mentioned  as  sunk.  The  aircraft 
carrier,  alleged  to  be  the  WASP,  is  said  to  have  been  put  out  of 
commission. 

-135- 


12  Aug.    19^2 

3.        Eastern  Front; 

Our   dive  bombers   scored-  well-placed  hits  while   attack" 
ing   the    enemy  anti-aircraft   artfllery  position   in  front   of   the 
Mountain  Corps,   Norway.     For   results   of  reconnaissance   carried 
out    over  the   Arctic   Ocean   see  Enemy  Situation,   Arctic   Ocean.  No 
further   reports  have  been   received. 


VII.  Warfare   in   the   Mediterranean  and  the  Black  Sea 

1.       Enemy  Situation,   Mediterranean; 

Western  Mediterranean; 

In   the  evening  the  FURIOUS,    listing   slightly  and 
escorted  by   3  destroyers,    entered  Gibraltar  from  the  east.      One 
of   the  destroyers   debarked  200  to  250  men  who  had  probably  been 
ship-wrecked.      Axis   air  forces   maintained  contact  with  the  con- 
voy from  dawn.     At   1100  the   convoy  was   reported  proceeding   at 
a  speed  of   13    to  15  knots    on  a  90°  course   50  miles   north   of  Bone 
and  consisting   at  that  time    of    2   or   3  battleships,   2  aircraft 
carriers,    5  cruisers,   21  destroyers,   and  19    steamers   and  tankers, 
including   1  passenger   ship.      The   sections    of    the  convoy  had 
evidently  been  reunited,   but  the   formation  was   stretched  over 
a  wide   area.      At   I7OO   its   position  was    reported  26  miles   northwest 
of   Cape  Blanc.      Toward   1930  the  heavy  ships   and  part    of   the 
other  escort   forces   turned  back  westward  about   35  miles  northeast 
of  Bizerte.      The   rest   of  the  convoy  continued  to  proceed  eastward. 
At  2230  it  was   assumed  to  be   off   Cape   Bon. 

Air  reconnaissance  reported  that   early  in  the  morning  2   des- 
troyers  and  2  steamers  were   proceeding   on  a  westerly  course 
south   of   La  Galite.      These  vessels  were    observed  for   the   last 
time    at   083O  when  proceeding   some    30  miles  west   of  La  Galite, 
The   vessels   presumably  departed  from  Valletta  where   they  had 
been    staying   since   the   last  convoy   operation  in  June. 

There  was  nothing  noteworthy  to  report  from  the  western  Mediter- 
ranean. The  cruiser  group  which  had  been  sighted  on  11  Aug.  was 
not   intercepted  again. 

2.  Own   Situation,   Mediterranean; 

The  Italian  Admiral  at    the  Naval  Staff  has   transmitted 
a  report  from  the  Italian  Admiralty  Staff   stating  that   on   the 
night   of   11  Aug.   a  minefield   set  for  72  hours   was    laid  in  the 
French  territorial  waters   off   Cape  Bon. 

Enemy  air   raids    on  Navarino  and  Cagliari    on  the  night   of   10  Aug. 
and  on   11  Aug.    did  not   cause   any  damage  to  the  Italian  naval 
forces   or  installations. 

The  German  Naval   Command,    Italy  reports   that   on   the   night    of   12 
Aug.    it   intends   to  setid   5  vessels    of   the  3rd  PT  Boat  Flotilla 
under  the  Flotilla  Commander  from  Porto  Empedocle   to  the    area 
off  Cape  Bon.     2   PT  boats  will  remain   In  Marsa  Matruh  ready  for 
action  against   enemy  forces   in   the  eastern  Mediterranean.     No 
submarines   are  ready  for  action  except  2  in  the   operations   area 

-I36- 


CONFIDENTIAL 


12  Aug.  1942 


in  the  eastern  and  2  in  the  western  Mediterranean.   The  Italians 
have  made  provisions  for  sending  out  12  to  15  PT  boats.   The 
question  whether  the  Italians  can  send  out  2  cruiser  divisions 
depends  on  whether  the  available  fighter  protection  will  be 
assigned  to  these  naval  forces   or  to  the  Air  Force  bomber  planes, 
The  Duce  will  probably  decide  in  favor  of  the  Air  Force. 

The  Admiral,  German  Naval  Command,  Italy  has  done  everything  in 
his  power  to  support  the  planned  fleet  action.   If  the  decision 
is  made  against  this  action,  the  Admiral  feels  that  it  will  mean 
missing  the  big  chance  of  annihilating  the  largest  convoy  under- 
taken so  far  in  the  Mediterranean  after  the  heavy  enemy  naval 
forces,  superior  in  number  and  arms,  have  withdrawn. 

Nothing  is  known  about  the  number  of  Italian  submarines  at  sea. 

The  Italian  Air  Force  reports  hits  on  an  aircraft  carrier  and  3 
cruisers,  as  well  as  the  sinking  of  2  merchant  ships. 

The  reports  received  so  far  do  not  give  a  clear  picture  of  suc- 
cesses scored  by  the  Italian  and  German  planes  and  submarines. 
In  addition  to  the  EAGLE,  which  was  sunk,  and  the  FURIOUS,  which 
returned  to  Gibraltar  in  damaged  condition,  a  third  carrier  is 
said  to  h'ave  been  heavily  damaged  by  dive  bombers. 

The  Naval  Staff  has  asked  the  Commander  in  Chief,  Air  Force  to 
allocate  the  first  2  of  the  5  new  mine-sweeping  planes  which 
will  be  released  in  August  to  the  Commanding  General,  Armed 
Forces,  South  for  the  Mediterranean.   No  further  planes  can  be 
allocated  since  there  are  only  9  such  planes  at  the  present t 
time,  and  7  of  them  are  not  ready  for  action. 

The  German  Naval  Command,  Italy  has  received  a  reply  to  this 
effect  (see  War  Diary  4  Aug.). 

3.  Transport  of  Supplies  to  North  Africa: 

In  view  of  the  enemy  situation,  the  transport  of 
supplies  to  North  Africa  has  been  held  up.   Supply  traffic  along 
the  North  African  coast  and  between  Greece  and  Italy  proceeded 
according  to  schedule. 

4.  Area  Naval  Group  South: 
Aegean  Sea: 

Enemy  Situation: 

On  11  Aug.  a  submarine  was  sighted  off  Milos. 

Own  Situation: 

Upon  request  of  the  Italian  Admiralty,  the  destroyer 
ZG  "3"  is  assigned  to  temporary  duty  with  the  8th  Italian 
Cruiser  Division  in  Navarino  after  bringing  a  convoy  Into  Suda. 

Small  vessels  are  again  permitted  to  sail  in  the  northern 
Aegean  as  far  as  Cape  Sunium. 


-137- 


CONFIDENTIAL 


12  Aug.    19i;2 


As  for  the  submarine  defense  in  the  Aegean  Sea,  which  considering 
the  heavy  convoy  traffic  (up  to  i|  convoys  simultaneously)  has 
become  a  serious  problem,  the  Commanding  Admiral,  Aegean  Sea  and 
the  Shipyard  Control  Staff  have  been  trying  in  vain  to  obtain 
German  workers  needed  for  the  completion  of  a  subchaser  and  5  sub- 
marine decoys,  as  well  as  2l\.   armed  trawlers  in  Skaramanga,  and  to 
arrive  at  a  satisfactory  solution  of  the  problems  of  food  and  pay 
f or- fhe  Greek  workers.  Group  South  is  justified  in  urging  the 
Naval  Staff  Submarine  Division  and  the  Naval  Construction  Division 
to  reverse  their  position  on  these  points  and  to  take  the  necessary 
steps  with  the  Italian  Admiralty  in  order  finally  to  bring  about 
the  completion  of  the  I4.  subchasers  and  the  auxiliary  cruiser  DRACHE 
under  construction  in  Trieste.  Group  South  further  demands  the 
following:   additional  landing  craft,  20  of  which  were  destined 
for  the  Aegean  Sea  but  have  in  the  meantime  been  sent  elsewhere; 
investigation  of  whether  the  Italian  Admiralty  can  , make  any  more 
escort  vessels  available;  more  of  the  particularly  well-suited 
Spanish  steamers  which  so  far  have  escaped  any  submarine  attacks. 

For  copy  of  the  telegram  from  Group  South  see  l/Skl  1975UA2  Gkdos . 
in  War  Diary,  Part  C,  Vol.  XIV. 

Black  Sea: 

a.  No  reports  about  the  naval  situation  have  been 
received  because  of  interrupted  communications. 

b.  With  regard  to  the  assignment  of  available  landing 
craft  to  the  task  of  transporting  supplies  for  Army  Group  A,  the 
Permanent  Representative  of  the  Commander  in  Chief,  Navy  at  the 
Fuehrer  Headquarters  transmits  to  the  Naval  Staff  Operations  Divi- 
sion, with  copy  to  the  Admiral,  Black  Sea,  the  following  wish 
expressed  by  the  Fuehrer  in  supplement  to  the  orders  Issued  to 
the  Naval  Staff: 

(1)  Since  the  available  transport  tonnage  is  hardly 
sufficient  for  simultaneous  execution  of  all  tasks,  the  vessels 
are  to  be  assigned  in  accordance  with  the  wishes  of  Army  Group  A. 
3  tasks  are  under  consideration  at  the  present  moirent: 

(a)  Transport  of  supplies  to  Yeisk. 

(b)  Transport  of  supplies  up  the  Don  River,  later  as 
far  as  Kalach. 

(c)  Ferrying  troops  across  the  Kerch  Strait. 

The  last-mentioned  task  is  not  yet  urgent,  while,  as  far  as  can 
be  foreseen,  tasks  ,(a)  and  (b)  are  of  equal  urgency.  According 
to  a  statement  by  the  Chief  of  Army  Transport,  vessels  can  pass 
under  the  Don  bridges.   Supplies  can  be  transported  up  the  Don 
River,  and  as  soon  as  a  mine-free  route  has  been  swept,  to  Yeisk 
as  well. 

(2)  As  soon  as  the  Army  Group  has  reached  the  coast 
south  of  the  Caucasus,  the  supply  of  fuel  by  sea  will  become  urgent. 
For  this  purpose  even  motor  mine  sweepers  and  PT  boats  carrying 
barrels  on  deck  should  be  employed,  if  necessary;  the  supply  of 
fuel  is  a  prerequisite  for  carrying  on  the  operation.  No  large 
quantities  will  be  required  since  the  number  of  motorized  units 
employed  in  the  operation  is  small.  Details  of  this  problem  are 

-I38- 


CONFIDENTIAL 
12  Aug.    19k2 

likewise   to  be   agreed  upon  with  Army  Group  A., 

Paragraph  (1)    is   in  keeping  with  orders   which  the 
Naval  Staff  has   already  issued  to  Group  South.      The 
direct   intervention   of  the  Fuehrer  Headquarters 
in   the    solution   of  the   transport   problem,    about 
which  the  Army  Quartermaster  and  Group  South  are 
conferring  at  the   present   time   at  Bucharest,   is 
rather  unfortunate   in  the   opinion   of  the  Naval 
Staff.     As   things   stand,    the  transport   of  supplies 
in  the  Black  Sea  is  an   operational  matter   of  direct 
concern  to  the  Navy.     It  is   to  be  feared  that  these 
various   orders   will  place   the  Admiral,   Black  Sea 
in  a  difficult  position.      The  Naval   Staff  will 
try  to  clarify  the   matter. 

c.        The  Naval  Staff's   inquiry  at   the  Army  General 
Staff,   Intelligence  Division,   East  about   transport   opportunities 
in   the   Caspian  Sea  was   answered   to  the  effect  that  the  Italian 
subchasers   can,    under  certain  circumstances,   be   transported 
on   the   road  from  Rostov  via  Tikhoryetsk-Armavir-Georgievsk  to 
Makhach  Kala   or  from  Rostov  via   Peschanokopskoye-Progradnoye- 
Voroshilovsk-Georgievsk  to  Makhach  Kala.     If  necessary,    the 
hills  in  the  vicinity   of    Voroshilovsk  will  have   to  be  bypassed 
by  taking  the  route   via  Petrovskoye.     The   roads   are   said  to  be 
5   to  8  m.   wide. 

Group  South  has  been  notified  accordingly. 


VIII. Situation  East  Asia 

No  noteworthy  reports  have  been   received. 


IX.   Army  Situation 

1.  Russian  Front; 

Army  Group  At 

Kerch  was  under  heavy  enemy  gunfire,  possibly  to  con- 
ceal a  withdrawal.  In  the  Kuban  area,  our  troops  have  reached 
and  taken  Ivorskaya.   South  of  Ivorskaya  the  12th  Panzer  Division 
is  fighting  against  stiff  enemy  resistance  In  swampy,  wooded 
terrain.  South  and  northwest  of  Maikop  there  is  also  some  mopping 
up  to  be  carried  out.  The  111th  Infantry  Division  has  reached 
Elista,  the  370th  the  area  northwest  of  Elista.  The  1st  Mountain 
Division  took  Kardoniskaya  (30  km.  south-southwest  of  Cherkessk). 

Army  Group  B: 

The  right  wing  of  the  Ij.th  Panzer  Army  succeeded  in 
gaining  ground  to  the  north   against  strong  enemy  resistance.     The 
Rumanian  units    on   the  Myshkoba  River  are   likewise  faced  by  strong 

-I39- 


CONFIDENTIAL 
12  Aug.  19[|.2 

enemy  forces.   The  regrouping  of  the  6th  Army  in  the  Kalach  area 
is  proceeding  according  to  plan.  Enemy  attacks  in  the  Svoboda  area 
were  repulsed.  The  2nd  Army  is  fighting  a  fierce  defense  battle 
near  Voronezh  and  south  of  Yelets, 

Central  Army  Group; 

A  strong  enemy  counterattack  held  up  our  offensive  in 
the  area  of  Sukhinichi.   The  defense  battle  of  Rzhev  reached  its 
climax  in  the  fierce  fighting  against  strong  enemy  tank  forces 
concentrated  in  a  small  area.  The  front  south  of  the  point  of 
penetration  was  generally  maintained.   After  putting  our  armored 
forces  out  of  action,  the  enemy  succeeded  in  throwing  our  lines 
north  of  Rzhev  back  toward  the  south  despite  continuous  attacks 
by  our  planes.   Our  losses  are  quite  heavy.  Further  enemy 
reinforcements  are  being  brought  up.  Another  enemy  attack  had 
to  be  countered  near  Byeloi. 

The  Russians  are  evidently  attempting  to  strike 
a  heavy  blow  at  this  point  in  order  to  relieve 
Stalingrad  which  is  the  main  objective  of  this 
year's  summer  campaign. 

Northern  Army  Group ; 

All  attacks  against  the  land  bridge  to  the  II  Army 
Corps  south  of  Lake  Ilmen  were  repulsed. 

2.  Finnish  Front; 

No  fighting    of    importance  was  reported. 

3.  North  Africa; 

The  situation   remained  unchanged. 


-ll+O- 


CONFIDENTIAL 
13  Aug.  1942 

Items  of  Political  Importance 

Except  for  unauthoritative  comments  in  the  press,  no  reports 
have  been  received  concerning  the  conferences  in  Moscow  and  the 
problem  of  the  second  front  in  Europe. 

According  to  a  statement  by  the  British  Government,  authorities 
in  India  have  the  situation  entirely  under  their  control.   There 
are  no  indications  whatsoever  of  any  important  mass  movement. 
Unrest  is  confined  to  a  few  large  towns.   For  further  details  on 
the  Indian  problem  see  Political  Review,  No.  188,  Paragraph  3. 

Portugal: 

Concern  about  the  situation  is  growing  under  the  ever-increasing 
pressure  by  the  British.  Salazar  is  working  out  a  detailed  note 
concerning  the  effect  of  the  British  blockade. 

Sweden: 

Since  Moscow  has  rejected  Sweden's  representations  against  the 
violations  of  her  neutrality,  Sweden  is  contemplating  the  re- 
call of  her  ambassador  from  Kuibyshev  "for  a  report". 

Turkey: 

The  German  Government  has  agreed  that  Turkey  should  take  over  the 
U.S.  planes  which  made  emergency  landings  on  Turkish  territory. 
The  crews  have  been  interned. 

* 

Japan : 

According  to  circles  connected  with  the  Korean  liberation  move- 
ment, a  Korean  made  an  attempt  on  the  lives  of  Premier  Toyo  and 
ex-Premier  Hirota.   Hirota  is  said  to  have  been  badly  injured, 
while  Toyo  suffered  minor  injuries. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  The  Chief,  Naval  Staff  Communications  Division  reports  that 
the  installation  of  radar  sets  on  Italian  submarines,  in  com- 
pliance with  the  request  of  the  Italian  Navy,  cannot  be  started 
before  September  because  our  requirements  must  be  met  first.   The 
7-day  test  of  the  instruments  by  a  submarine  in  the  Bay  of  Biscay 
is  now  being  carried  out. 

II.  The  Naval  Attache  in  Tokyo  reports  that  Japan's  wishes  con- 
cerning the  equipment,  etc.   to  be  carried  by  the  Japanese  sub- 
marine I  n30n  are  being  fully  complied  with.   The  submarine  is  to 
depart  on  22  Aug. 

III.  The  Chief,  Naval  Intelligence  Division  reports  that  the  agree- 
ment between  the  German  Ambassador  in  Ankara  and  Foreign  Minister 
Menemencioglu,  providing  for  a  strictly  confidential  relay  of  in- 
formation of  military  importance  received  by  the  Turkish  Foreign 
Ministry,  has  now  gone  into  effect. 

-nn- 


CONFIDENTIAL 
13  Aug.  1942 

In  a  Very  Restricted  Circle; 

IV.  Group  West  gives  an  account  of  the  circumstances  accompany- 
ing the  unsuccessful  departure  of  the  blockade-runner  UCKERMARK. 
On  10  Aug.  at  1700,  a  Wellington  bomber  approached  the  ship  at 
440  91  n,  8°  16 »  W  without  dropping  bombs.   It  was  observed  that 
most  of  our  antiaircraft  projectiles  rebounded  from  the  target. 
During  his  second  attack  at  1710  the  enemy  used  machine  guns. 
Thereupon  the  UCKERMARK  changed  to  an  easterly  course.  The  enemy 
maintained  contact  with  the  ship  until  1800.  At  1716  the  ship 
reported  that  she  was  being  shadowed  and  that  she  intended  to 
continue  the  breakthrough   if  the  weather  became  worse.   Since, 
however,  the  weather  improved,  and  she  would  have  had  to  wait 
another  5  hours  until  darkness,  the  ship  sent  a  short  signal  at 
1935  reporting  that  she  had  decided  to  turn  back.  Group  West 
does  not  approve  of  the  captain's  decision.   Unfortunately,  the 
radio  message  sent  at  1716  did  not  reach  Group  West  because  a 
wrong  code  was  used.   Otherwise  the  Group  would  have  recommended 
that  the  ship  turn  back  again  and  continue  her  voyage  at  night- 
fall.  The  strange  thing  is  that  radio  intelligence  failed  to 
intercept  any  enemy  reconnaissance  message  concerning  this  event. 
The  incident  again  proves  that  more  planes  are  needed.  A  special 
request  to  this  effect  has  already  been  received  (see  War  Diary 
12  Aug.)  and  will  be  used  by  the  Naval  Staff  to  back  up  its  pre- 
vious demand  for  increased  air  protection. 

The  Naval  Staff  cannot  readily  subscribe  to  the  opinion  of  the 
Group  Command  disapproving  the  action  of  the  UCKERMARK.   The 
events  of  10  Aug.  definitely  jeopardized  the  safe  departure  of 
this  particularly  valuable  blockade-runner,  the  first  to  depart 
this  season.  The  UCKERMARK  will  have  a  better  chance  to  break 
through  after  the  air  forces. in  the  Bay  of  Biscay  area  have  been 
reinforced,  than  if  she-  had  tried  to  shake  off  the  enemy  during 
the  6  short  hours  of  darkness.  As  a  matter  of  fact  the  Naval 
Liaison  Officer  to  the  Air  Force  Operations  Staff  has  reported 
that  the  Air  Force  Operations  Staff  has  in  the  meantime  complied 
with  the  request  of  the  Chief,  Naval  Staff  to  the  Fuehrer  and 
has  ordered  that  the  forces  of  the.  Air  Command,  Atlantic  Coast 
be  brought  up  to  a  full-strength  Ju  88  fighter  group  for  patrol 
of  the  Bay  of  Biscay. 

V.  a.   According  to  another  communication  from  the  Naval 
Liaison  Officer  to  the  Air  Force  Operations  Staff,  dated  8  Aug., 
the  Chief  of  the  Air  Force  General  Staff  issued  an  order,  based 
on  the  report  of  the  Commander  in  Chief,  Navy  to  the  Fuehrer 
about  his  inspection  tour  in  western  France,  by  which  10  more 
minesweeping  planes  are  to  be  made  available.  The  mine- 
sweeping  planes  now  -available  are  to  be  distributed  as  follows: 
6  planes  for  the  3rd  Air  Force,  2  for  the  Air  Force  Group  Com- 
mand, Central  Area,  and  1  for  the  Commanding  General,  Armed 
Forces,  South. 

The  Naval  Staff  Operations  Division  suggests  that  2  of  the  5 
minesweeping  planes  becoming  available  in  August  be  allocated 
to  the  Commanding  General,  Armed  Forces,  South  and  3  to  the  Air 
Force  Group  Command,  Central  Area.   This  would  mean  that  the 
3rd  Air  Force  will  have  6,  the  Air  Force  Group  Command,  Central 
Area  5,  and  the  Commanding  General,  Armed  Forces,  South  3  mine- 
sweeping  planes  at  their  disposal.  The  Naval  Staff  agrees  with 
the  suggestion  that  5  of  the  10  additional  planes  which  will  be- 
come available  by  1  Oct.  1942  be  allocated  to  the  3rd  Air  Force 

-ll|2- 


CONFIDENTIAL 


13  Aug.  194k; 


and  the  other  5  to  the  Air  Force  Group  Command,  Central  Area.   The 
monthly  production  of  2  mine-sweeping  planes  during  the  following 
months  will  be  needed  for  replacements. 

b.  The  Air  Force  Operations  Staff  considers  the  enemy's 
night  raid  on  Osnabrueck  of  9  Aug.  as  very  successful,  particularly 
in  view  of  the  fact  that  it  was  executed  during  the  new-moon  period. 
The  attack  must  have  been  guided  by  radio  beams.   During  the  new- 
moon  nights  the  effectiveness  of  our  night  fighter  operations  is 
considerably  reduced.   Our  own  planes  often  do  not  locate  their  tar- 
gets in  the  British  Isles. 

c.  In  case  of  operations  on  the  Iberian  Peninsula,  the 
objections  of  the  Chief,  Naval  Staff  regarding  the  proximity  of 
the  airfields'to  the  coast  will  be  taken  into  account.   The  Air 
Force  Operations  Staff  fully  recognises  the  validity  of  these  ob- 
jections. 


Special  Items: 

I.   A  map  showing  damage  and  losses  from  aerial  mines  and  bombs 
dropped  by  the  enemy  in  July  1942  show  a  concentration  on  the 
German  Bight  and  the  western  part  of  the  Baltic  Sea.   This  infor- 
mation was  sent  to  Groups  West  and  North,  the  Commanding  Admiral, 
Norway,  the  Commanding  Admiral,  Defenses,  West,  the  Commanding 
Admiral,  Defenses,  North,  the  Commanding  Admiral,  Defenses,  Baltic 
Sea,  and  the  Air  Force.   See  copy  no.  9  of  l/Skl  IE  19035/42 
Gkdos.  in  War  Diary,  Part  C,  Vol.  VI. 

II, •  On  16  Jul.  the  Air  Force  General  attached  to  the  Commander  in 
Chief,  Navy  stipulated  the  basic  requirements  for  providing  and 
training  initial  and  replacement  flying  personnel  for  the  GRAF 
ZEPPELIN.   These  requirements  were  submitted  to  the  respective  Air 
Force  departments  (see  War  Diary  16  Jul.).   The  additional  re- 
quirements in  personnel,  which  will  result  if  the  5  aircraft  car- 
riers demanded  by  the  Fuehrer  become  available  by  the  end  of  1944, 
make  it  necessary  to  handle  the  personnel  problem  outside  of  the 
Navy.   Thus  a  naval  air  force  must  be  created,  which  would  in-, 
elude  the  carrier-based  planes. 

This  problem  must  be  solved  because  the  Naval  Staff  believes  that 
in  the  long  run  not  only  the  morale  of  the  crews  but  also  the 
readiness  of  the  ships  to  go  into  action  will  be  affected  if  com- 
mand over  the  personnel  alternates  constantly  between  Air  Force 
and  Navy. 

Moreover,  the  Naval  Staff  is  of  the  opinion  that  the  organization 
and  maintenance  of  the  carrier  and  ship  plane  forces  will  create 
an  undesirable  personnel  and  training  problem  for  the  Air  Force. 
On  the  one  hand,  this  may  delay  the  operational  readiness  of  the 
ships;  on  the  other,  it  may  serve  to  diminish  the  expected  op- 
position of  the  Commander  in  Chief,  Air  Force  to  an  independent 
naval  air  force. 

\ 
The  Naval  Staff  has  therefore  approached  the  Naval  Staff  Quarter- 
master Division,  the  Naval  Officer  Personnel  Division,  the  Naval 
Recruitment  Division,  and  the  Air  Force  General  attached  to  the 
Commander  in  Chief,  Navy  In  order  to  initiate  the  necessary  steps 
to  solve  this  problem  in  time. 

-143- 


CONFIDENTIAL 
13  Aug.  1942 

For  copy  7  see  l/Skl  17432/42  Gkdos.  in  War  Diary,  Part  C,  Vol. 
V. 

III.  Radio  Intelligence  Report  No.  32/42  of  the  Naval  Communica- 
tions Division,  Communications  Intelligence  Branch  contains  a 
compilation  of  enemy  reports  intercepted  by  the  radio  decoding 
and  radio  intercept  services  between  3  and  9  Aug.  1942. 

The  results  of  radio  decoding  are  still  extremely  poor  since  up 
to  now  we  have  not  been  able  to  break  the  new  British  and  Ameri- 
can codes.  An  approximately  accurate  picture  of  the  disposition 
of  the  enemy's  naval  forces,  based  on  radio  intelligence  data, 
is  therefore  lacking  at  the  present  time. 


Situation  13  Aug.  1942 

I.   War  in  Foreign  Waters  | 

1.  Enemy  Situation; 

South  Atlantic; 

The  British  steamer  NURJEHAN  sent  a  QQQ  signal  from 
quadrant  ET  8240.   The  Admiral,  Freetown  reported  on  5  Aug.  that 
one  vessel  had  proceeded  on  an  easterly  course  until  17  Jul.  and 
was  later  sunk  by  a  PT  boat  operating  with  an  auxiliary  cruiser. 
The  size  of  the  auxiliary  cruiser  is  3,500  GRT,  that  of  an  ac- 
companying ship  about  1,000  GRT.   The  report  probably  refers  to 
the  sinking  of  the  GLOUCESTER  CASTLE  by  the  light  PT  boat  from 
ship  "28".   The  GLOUCESTER  CASTLE  sent  an  SSS  message  from  6°  30' 
S,  1°  E  on  16  Jul.  at  2257. 

A  report  of  the  headquarters  in  Freetown  concerning  the  sinking 

of  the  steamer  DALHOUSIE  on  9  Aug.  states;   "At  present  no  British 

naval  forces  available  for  rendering  aid.1' 

The  Naval  Attache  in  Lisbon  reports  that  on  1  Aug.  a  convoy  con- 
sisting of  5  troop  transports  and  20  steamers  and  escorted  by  1  * 
vessel  of  the  ILLUSTRIOUS  class,  2  cruisers,  and  12  destroyers               ™ 
was  sighted  in  Freetown. 

The  Consulate  in  Lourenco  Marques  reports  that  on  10  Aug.  1 
cruiser  and  3  destroyers,  as  well  as  2  ships  of  the  size  of  the 
steamer  QUEEN  MARY,  departed  from  Cape  Town  in  southeasterly 
direction. 

2.  Own  Situation; 

Via  Telegram  2100  the  Naval  Staff  notified  the  Naval 
Attache  in  Tokyo  that  the  captain  of  the  DOGGERBANK  has  been 
awarded  the  German  Cross  in  gold.  At  the  same  time  the  Naval 
Attache  was  requested  to  ask  the  captain  to  report  at  his  con- 
venience on  the  morale  and  behavior  of  the  crew  of  the  DOGGER- 
BANK  during  the  unusually- long  and  uneventful  periods  of  wait- 
ing. 


CONFIDENTIAL 


13  Aug.  1942 


Via  Radiogram  1629  the  Naval  Staff  Informs  all  vessels  In  foreign 
waters  about  the  production  of  new  enemy  ships  in  1942  and  about 
other  enemy  plans  for  overcoming  the  transportation  crisis.  Radio- 
gram 2241  contains  corrections  on  the  Japanese  statement  concern" 
ing  the  naval  battle  in  the  Solomon  Islands.   Information  on  the 
enemy  situation  is  sent  out  via  Radiogram  0614. 


II.   Situation  West  Area 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation; 
Atlantic  Coast; 

No  incidents  of  importance  occurred. 

Channel  Coast; 

Prom  0124  to  0133  our  batteries  fired  on  enemy  ships 
located  in  quadrants  BP  3322  and  3321.   After  the  first  salvo, 
the  ships  withdrew  on  zigzag  courses.   Beginning  at  0245,  the 
long-range  battery  at  St.  Margaret  on  Cliff  opened  fire  on  a 
German  convoy  off  Cape  Blanc  Nez.   An  Army  battery  returned  the 
fire  from  0251  to  0337.   Prom  0314  on,  the  enemy  continued  a 
rapid  fire.   The  projectiles  struck  off  Cape  Blanc  Nez  and  in 
front  of  the  soldiers'  cemetery  west  of  Sangatte. 

A  mine-detonating  vessel  swept  a  mine  at  point  "Herz  222". 


III.  North  Seat  Norway.  Arctic  Ocean 

1.  North  Sea: 

Except  for  2  ground  mines  swept  in  quadrant  AN  6998,  no 
incidents  were  reported. 

2.  Norway,  Arctic  Ocean; 

Enemy  Situation; 

Through  decoding  of  an  Admiralty  report,  it  has  be- 
come known  that  during  the  RAP  attack  on  the  PRINZ  EUGEN  on  17 
May  1942  the  enemy  lost  9  planes,  i.e.,  7  torpedo  bombers,  1 
Hudson,  and  1  Beaufighter.   The  report  states  that  in  the  course 
of  the  battle  the  Beaufighter  fired  on  German  destroyers  with 
cannons  and  machine  guns.  No  further  information  about  the 
PRINZ  EUGEN  was  contained  in  this  report. 

-ili5- 


CONFIDENTIAL 
13  Aug.  1942 

According  to  an  intelligence  report  from  Stockholm,  the  follow- 
ing forces  have  been  available  for  the  Allied  patrol  service  in 
the  Arctic  Ocean  since  22  Jul.: 

a.  Great  Britain:   8  submarines,  2  destroyers,  6  PT  boats, 

1  aircraft  carrier,  34  naval  planes. 

b.  U.S.A. t         6  submarines,  1  destroyer,  PT  boats, 

12  naval  planes. 

c.  Russia:         6  submarines,  1  light  cruiser,  4  to  6 

PT  boats,  30  to  40  naval  planes. 

d.  Holland:        1  submarine  and  1  small  cruiser  built 

in  1916. 

Reconnaissance  in  the  Arctic  Ocean  up  to  Iceland  and  toward  Spits- 
bergen on  13  Aug.  brought  no  new  information.   Reconnaissance  of 
the  Kara  Strait  and  the  Yugor  Strait  was  unsuccessful  due  to  low- 
lying  clouds. 

Own  Situation: 

No  incidents  were  reported. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

Mine  operation  "Oppeln"  (experimental  minefield)  in  the 
Skagerrak  was  executed  according  to  plan.  The  Danish  steam  • 
trawler  KAP  sank  southeast  of  the  Lim  Fjord  as  a  result  of  a 
mine  hit.  The  departure  of  the  Oslo-Aalborg  convoy  was  post- 
poned for  24  hours  on  account  of  mines.  For  the  same  reason,  the 
routes  in  the  Baltic  Sea  entrances  were  temporarily  closed. 

The  Finnish  steamer  HELEN  struck  a  mine  and  sank  east  of  Cape 
Arkona . 

Minefield  "Seehund  III"  was  laid  in  the  Gulf  of  Finland  according 
to  plan. 

Bad  weather  prevented  operations  by  mine-sweeping  pinnaces. 

With  reference  to  the  demands  of  the  Commander,  PT  Boats  for  equip- 
ment, materiel,  and  shelters  to  be  made  available  in  case  of  a 
transfer  of  the  6th  PT  Boat  Flotilla  to  the  Commander,  Mine  Sweep- 
ers, Baltic  Sea  (see  War  Diary  12  Aug.  and  Telegram  1425  of  13  Aug.), 
Group  North  points  out  that  the  requirements  will  have  to  be  limited 
to  a  minimum.   Since  the  transfer  is  only  temporary,  the  PT  boats 
will  have  to  be  satisfied  with  temporary  Installations.  For  de- 
tails see  Telegram  0911. 

With  reference  to  the  suggestion  of  the  Commander,  Mine  Sweepers, 
Baltic  Sea  and  the  request  of  Group  North  concerning  the  transfer 
of  the  small  coastal  mine-laying  craft  and  Italian  subchasers 
from  Lake  Ladoga  to  the  Gulf  of  Finland,  the  Naval  Staff  calls  the 
attention  of  Group  North  to  the  definite  and  unequivocal  rejection 
of  that  request  by  the  Marshal  of  Finland  in  his  statement  to  the 

-U4.6- 


CONFIDENTIAL 
13  Aug.  1942 

German  General  at  the  Finnish  Headquarters.   Therefore,  as  long 
as  the  situation  remains  basically  unchanged,  a  renewal  of  this 
request  to  the  Marshal  of  Finland  is  out  of  the  question.  The 
vessels  can  be  transferred  only  if  the  Finns  on  their  own  agree 
to  have  them  withdrawn  from  Lake  Ladoga.   (See  Telegram  1316.) 


V.    Submarine  V/arfare 

1.  Enemy  Situation; 

Lively  reconnaissance  activity  was  reported  from  coastal 
waters  off  Brest.   At  noon  planes  in  cooperation  with  a  destroyer 
were  engaged  in  submarine  chase.   Several  submarine  sighting  re- 
ports were  intercepted. 

At  2200  the  U.S.  steamer  CALIFORNIA  reported  that  she  was  being 
attacked  by  a  submarine  some  500  miles  southwest  of  the  Cape  Verde 
Islands.   Other  submarine  attacks  were  observed  southwest  of  the 
Mississippi  Delta  and  in  the  Windward  Passage. 

2.  Own  Situation; 

Because  of  the  ice,  submarine  U  "255"  is  being  with- 
drawn from  her  position  off  the  Olga  Strait.   Submarine  U  "601" 
has  been  ordered  to  ascertain  (for  operation  "Wunderland" )  the 
ice  conditions  off  Cape  Zhelaniya  (northeastern  tip  of  Novaya 
Zemlya ) .  t 

In  the  North  Atlantic,  radio  intelligence  intercepted  messages 
from  the  westbound  convoy  in  quadrant  AL  5112,  which  was  to  be 
attacked  by  group  "Loss". 

In  the  western  Atlantic,  submarine  U  "98"  sighted  a  southbound 
convoy  of  6  steamers  in  quadrant  0B  3689  but  lost  contact  with 
it  at  nightfall. 

Several  submarines  scored  gratifying  successes  in  attacking  a 
convoy  of  24  steamers  in  the  V/indward  Passage.   Submarine  U  "658" 
sank  a  7,000  GRT  tanker  and  probably  also  an  8,000  GRT  steamer. 
Submarine  U  "600"  reported  sinking  2  steamers  totalling  14,000 
GRT  and  scoring  another  torpedo  hit. 

Submarine  U  "508"  torpedoed  2  ships  in  a  convoy  of  4  steamers  in 
the  western  entrance  .of  the  Florida  Strait  and  heard  sounds  of 
sinking.   Anti-detection  decoy  devices  (Bold)  were  used  for  the 
first  time  with  success  against  a  depth-charge  attack.   The  size 
of  each  of  the  2  steamers  was  estimated  at  approximately  8,000 
GRT. 

In  the  Mediterranean,  submarine  U  "73"  attacked  2  destroyers  in 
the  approach  to  the  Strait  of  La  Galite  and  heard  1  hit.  It  is 
not  known  whether  they  were  sunk. 

For  further  reports  see  supplement  to  the  submarine  situation  in 
War  Diary,  Part  B,  Vol.  IV. 


-lltf- 


CONFIDENTIAL 
13  Aug.  1942 

VI.   Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

On  the  night  of  12  Aug.  and  on  13  Aug.  small  numbers 
of  our  planes  attacked  localities  on  the  coast,  including  Edin- 
burgh.  1  patrol  vessel  and  1  vessel  apparently  serving  as  liv- 
ing quarters  were  sunk  near  Salcontoa.   On  the  night  of  13  Aug. 
enemy  planes  made  35  incursions,  31  of  which  were  over  Reich 
territory.  No  bombs  were  dropped  but  the  planes  are  presumed  to 
have  dropped  mines.   They  penetrated  as  far  as  Doberan-Treptow- 
Copenhagen.   Balloons  with  incendiary  fuses  were  shot  down  near 
Erfurt.  For  details  of  the  heavy  damage  caused  in  Mainz  on  the 
night  of  12  Aug.  see  daily  situation  report. 

2.  Mediterranean  Theater: 

No  final  results  of  the  offensive  operations  against 
the  enemy  convoy  attacked  on  13  Aug.  have  been  received  so  far. 
Contact  with  the  vessels  which  reached  Malta  was  maintained  up 
to  a  point  close  to  the  southern  coast  of  the  island. 

Photographic  reconnaissance  of  Port  Said,  Suez,  and  Port  Ibrahim 
failed  to  yield  any  new  data.   For  details  see  dally  situation 
report. 

3.  Eastern  Front: 

101  enemy  planes  were  reported  shot,  down  on  the  Army 
fronts  on  12  Aug. 

On  12  Aug.  2  steamers  of  2,000  GRT  each  were  sunk  off  Novorossisk, 
1  steamer  of  500  GRT  was  sunk  off  Anapa,  and  1  steamer  of  600  GRT 
was  sunk  in  the  bay  of  Temryuk.   Other  vessels  were  damaged. 

For  reconnaissance  results  see  Enemy  Situation,  Black  Sea. 

In  the  Gulf  of  Finland,  1  mine  sweeper  was  damaged  in  Lavansaari. 


VII.  V/arfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation,  Mediterranean: 

According  to  an  intelligence  report  from  Spain,  the 
aircraft  carrier  FURIOUS,  which  arrived  in  Gibraltar  on  the 
evening  of  12  Aug.,  entered  the  dock  on  13  Aug.  The  ship  is 
probably  damaged.  A  destroyer  with  a  damaged  bow,  probably  as  a 
result  of  collision,  arrived  in  Gibraltar  from  the  east.  The 
ARGUS  was  in  the  harbor  on  13  Aug.   Air  reconnaissance  reports 
from  the  eastern  Mediterranean  that  at  0800  2  cruisers,  4  de- 
stroyers, and  7  small  vessels  were  proceeding  on  a  westerly  course 
60  miles  west  of  Cyprus,  while  2  destroyers  were  south  of  there. 
8  westbound  vessels,  apparently  escort  vessels,  were  sighted  off 
Alexandria. 


-1U8- 


CONFIDENTIAL 
13  Aug.    1942 

» 

Operations  against  the  convoy: 

It  is  not  yet  possible  to  form  a  clear  picture  of  the 
successes  scored  by  Axis  planes  and  submarines  during  the  day  and 
the  night  of  12  Aug.   Worth  noting   among  the  numerous  separate 
reports  received  yesterday  are  the  statements  that  an  aircraft 
carrier  was  set  on  fire  by  6  bombs  from  dive  bombers  and  that  an 
Italian  submarine  torpedoed  a  cruiser.   With  the  exception  of  the 
heavy  forces  which  turned  back  around  1930,  the  enemy  convoy 
passed  Cape  Bon  in  easterly  direction  around  midnight.   No  evid- 
ence of  the  effect  of  -the  Italian  minefield  recently  laid  in  this 
area  has  been  observed  so  far.  At  0400  the  convoy  was  proceeding 
36  miles  southwest  of  Pantelleria  and  consisted  at  that  time  of  3 
to  4  cruisers,  some  10  destroyers,  and  about  10  steamers.   Later, 
reports  speak  of  approximately  15  escort  vessels,  including  the 
UNICORN  which  is  mentioned  very  vaguely  and  probably  was  not  there 
at  all,  and  9  merchant  vessels.   German  and  Italian  PT  boats  and 
planes  were  engaged  in  the  operation  against  the  convoy  during  the 
night.   4  boats  of  the  3rd  PT  Boat  Flotilla,  which  were  brought 
up  at  top  speed,  directly  from  Crete,  set  1  steamer  of  15,000  GRT 
on  fire  with  a  torpedo  hit  and  torpedoed  1  tanker  of  10,000  GRT, 
1  tanker  of  12,000  GRT,  1  steamer  of  8,000  GRT,  and  probably  also 
another  steamer.   Since  the  PT  boat;s  encountered  strong  defense 
action,  they  could  not  wait  to  watch  the  ships  sink.   One  of  the. 
PT  boats  suffered  slight  casualties  as  a  result  of  a  shell  hit. 
All  vessels  have  arrived  in  Porto  Empedocle.   No  complete  reports 
have  as  yet  been  received  about  the  successes  of  the  Italian  PT 
boats.   The  Air  Force  General  Staff  has  reported  the  successes  of 
the  German  Air  Force.   They  must  have  increased  even  further  dur- 
ing the  morning,  because  at  around  1400  only  4  or  5  merchant   , 
vessels  and  4  to  6  light  escort  vessels  were  reported  in  the 
enemy  convoy  20  miles  west  of  Malta.   Around  the  same  time,  1 
damaged  aircraft  carrier  in  flames,  assumed  to  be  the  WASP,  was 
off  Bizerte,  and  3  other  burning  ships  including  1  tanker  were 
off  Cape  Bon.   At  noon  1  battleship,  1  cruiser,  and  4  destroyers 
were  located  26  miles  north  of  Cape  Bougaroun  returning  west.  The 
second  battleship  and  the  fourth  carrier,  which  may  also  be 
assumed  to  have  turned  back  and  to  be  en  route  to  Gibraltar,  were 
not  located.   In  the  evening  3  cruisers  and  4  destroyers  were 
sighted  proceeding  westward  northwest  of  Malta.   These  vessels 
were  probably  escort  forces  detached  from  what  was  left  of  the 
convoy,  which  in  the  meantime  entered  Valletta.   As  things  stand 
now,  no  more  than  5  or  6  enemy  merchant  vessels  may  be  assumed 
to  have  reached  the  harbor  of  Valletta.   Since  it  is  pretty  certain 
that  21  merchant  ships  departed  from  the  Strait  of  Gibraltar  in 
an  easterly  direction,  the  fact  that  an  extraordinary  success  has 
been  achieved  is  established  beyond  doubt.   The  losses  and  damages 
inflicted  on  the  warships,  particularly  on  the  aircraft  carriers, 
also  represent  an  all-time  high,  as  far  as  can  be  gathered  from 
reports   received  so  far. 

As  had  been  expected,  the  Duce  decided  against  the  participation 
of  the  fleet  in  this  operation.   The  Italian  cruiser  force,  which 
was  repeatedly  although  unsuccessfully  attacked  by  enemy  planes 
on  the  night  of  12  Aug.  in  the  Tyrrhenian  Sea,  was  ordered  to  re- 
turn to  port. 

The  3rd  PT  Boat  Flotilla  has  been  ordered  to  search  for  damaged 
or  returning  enemy  vessels  in  the  area  between  Cape  Bon  and  Cape 

-Hj-9- 


CONFIDENTIAL 


13  Aug.  1942 


Blanc  during  the  night  of  13  Aug.   At  2000,  2  boats  of  the 
flotilla  will  depart  from  Porto  Empedocle. 

3.  Transport  of  Supplies  to  North  Africa; 

Ship  traffic  from  Italy  and  Greece  is  at  a  standstill. 
On  the  evening  of  12  Aug.  1  transport  submarine  departed  from 
Taranto  for  Tripoli.   As  for  the  transport  of  supplies  along  the 
North  African  coast,  on  the  morning  of  12  Aug.  an  enemy  submarine 
sank  the  OGADEN  en  route  from  Benghazi  to  Tobruk. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

Destroyer  ZG  "3"  has  arrived  in  Navarino.   Convoy 
operations  proceeded  according  to  plan,  with  no  incidents  to 
report. 

Black  Sea: 

Since  according  to  interpretation  of  photographs  taken 
on  9  Aug.  and  according  to  radio  intelligence,  the  cruiser  KRASNY 
KHIM  is  evidently  undamaged,  the  vessel  sunk  by  Italian  sub- 
chasers on  3  Aug.  was  probably  a  three-funnel  destroyer.   This 
assumption  on  the  part  of  the  Naval  Staff  is  recorded  in  the  War 
Diary,  3  Aug. 

Since  the  PT  boat  attack  off  the  Caucasian  coast  during  the  night 
of  10  Aug.  was  detected  by  the  enemy,  there  is  no  objection  to 
announcing  the  sinking  success  scored  on  the  preceding  night.  The 
Minesweeping  Command,  Crimea  is  being  dissolved  following  comple- 
tion of  its  special  mission. 

Convoy  operations  proceeded  according  to  plan  without  any  in- 
cidents. 

Special  Items: 

The  Naval  Staff  has  Informed  Group  South  and  the  Admiral, 
Black  Sea  that  paragraph  1  of  Vice  Admiral  Krancke's  instructions 
is  a  confirmation  of  a  previous  directive  of  the  Naval  Staff  on  the 
subject,  and  that,  with  regard  to  paragraph  2,  the  procedure  to  be 
followed  must  be  agreed  upon  with  Army  Group  A. 

Group  South  has  submitted  a  summary  of  the  results  reached  at  the 
conference  with  the  Naval  Liaison  Officer  to  the  Army  High  Command 
and  the   representative  of  the  Army  General  Staff  in  Bucharest. 
For  copy  of  the  telegram  see  l/Skl  19766/42  Gkdos.  in  War  Diary, 
Part  C,  Vol.  XIV  a.   The  results  can  be  summed  up  as  follows: 

(1)  The  Army  drops  the  Idea  of  shifting  the  main  supply  route 
for  Nikolayev  to  Sevastopol. 

(2)  In  the  Sea  of  Azov,  the  Army  demands  that  in  addition  to 
transports  from  Taganrog  to  Azov  1,500  tons  of  supplies  be  trans- 
ported daily  from  Mariupol  to  Yeisk. 

(3)  Even  after  the  execution  of  operation  "Bluecher  II"  the 
Army  will  need  landing  craft  for  transporting  some  troops  from 
Kerch  to  Taman. 

-I50- 


CONFIDENT I AL 
13  Aug.  1942 

(4).  The  Army  declares  that,  due  to  the  inadequate  capa- 
city of  railroads  and  other  means  of  land  transportation,  it  is 
of  decisive  importance  for  fast  progress  of  these  operations  to 
adapt  supply  transport  by  sea  to  the  requirements  of  the  Army 
operations  in  the  Black  Sea  area.   For  this  purpose  the  Army 
desires  that  the  transport  vessels  operate  as  far  east  as  pos- 
sible, for  example,  as  far  as  Novorossisk;  from  there,  landing 
barges  will  bring  the  supplies  farther  up.   It  is  urgent  that 
6,000  tons  of  fuel  be  brought  to  Novorossisk  immediately  after 
its  seizure. 

Re:   (2)   Group  South  believes  that  the  ,  Sea  of  Azov  must 

first  be  cleared  of  the  magnetic  mines  which  were  located  there. 

The  ship  tonnage  will  be  increased  by  bringing  up  tugs  from  the 
Danube. 

Re:   (3)  Group  South  is  of  the  opinion  that,  after  having 
completed  operation  "Bluecher  II",  the  landing  craft  must  be  re- 
leased for  assignment  elsewhere  and  must  therefore  be  replaced 
either  by  Army  barges  or  by  additional  tugs  from  the  Danube. 

Re:   (4)   Group  South  can  agree  to  using  small  transport 
vessels  for  bringing  supplies  to  Sevastopol  or  even  to  Feo- 
dosiya, as  soon  as  motor  mine  sweepers  and  escort  vessels  be- 
come available  after  termination  of  operation  "Bluecher  II". 
Group  South  is,  however,  not  in  a  position  to  assume  responsi- 
bility for  the  transport  of  supplies  to  Kerch  and  to  Black  Sea 
ports  situated  farther  to  the  east  unless  the  routes  are 
thoroughly  swept  and  Russian  surface  forces  eliminated  from  that 
area.   The  steamers,  of  which  there  are  only  13  available  in 
all,  can  be  used  only  in  the  most  pressing  emergency.   The  Group 
therefore  suggests  concentration  of  all  landing  craft  (some  35 
up  to  the  end  of  August)  and  establishment  of  supply  transport 
routes  from  Feodosiya  or  Kerch  to  Anapa  or  .Novorossisk  with  in- 
termediate ports,  so  that  700  tons  per  day  can  be  delivered. 
The  Admiral,  Black  Sea  would  be  in  control  of  the  traffic  and 
in  charge  of  the  escort  forces.   The  supplies  would  be  brought 
to  Kerch  or  Feodosiya  from  Nikolayev  or  Sevastopol  by  train. 
In  order  to  keep  pace  with  the  over-all  situation,  the  Navy 
will  continue  its  efforts  to  expand  sea  transport  to  the  east 
as  soon  as  possible. 

The  Army  Quartermaster  General,  who  will  transfer  to  the  11th 
Army  High  Command  his  authority  with  regard  to  supplies  for 
Kerch  and  farther  east,  is  to  be  the  only  requisitioning  agency 
of  the  Army. 

Group  South  suggests  that  either  sea  transport  for  the  Air  Force 
be  included  in  the  "aforementioned  arrangement,  or  a  definite 
amount  of  tonnage  be  reserved  for  the  4th  Air  Force. 

Group  South  assumes  that  the  reported  regulation  supersedes 
the  directive  transmitted  by  Vice  Admiral  Krancke.  Group  South 
also  mentions  the  differences  of  opinion  which  were  caused  by 
that  directive,  particularly  at  the  command  of  the  Admiral,  Black 
Sea.   (See  Telegram  2045.) 

The  only  point  still  to  be  clarified  is  whether  the  authority 
for  requisitioning  transports  will  rest  with  Army  Group  A  or 
with  the  11th  Army  High  Command. 


-151- 


CONFIDENTIAL 
13  Aug.  1942 

VIII.  Situation  East  Asia 

No  noteworthy  reports  have  been  received. 


IX.   Army  Situation 

1.  Russian  Front; 

Army  Group  At 

An  assault  detachment  found  the  southern  part  of  the 
Taman  Peninsula  free  of  enemy  troops. 

On  the  Krasnodar  sector,  enemy  attempts  to  cross  the  Kuban  River 
in  northerly  direction  were  thwarted.  Our  advance  detachments 
pushed  forward  up  to  50  km  southwest  of  I.'aikop.   The  enemy  is 
being  mopped  up  in  the  wooded  area  near  Pyatigorsk. 

Army  Group  B; 

The  right  wing  of  the  4th  Panzer  Army  has  pushed  for- 
ward as  far  as  east  of  the  railway  station  of  Chinguta.  Near 
Kletskaya,  our  troops  seized  the  hills  east  of  that  town.  The 
8th  Italian  Army  took  over  the  defenses  on  the  Don  River.  Fight- 
ing north  of  Voronezh  continues.   South  of  Yelets  the  enemy  re- 
newed his  stubborn  attacks  without  lasting  effect.   The  Command- 
ing General  of  the  Russian  army  in  the  northern  Caucasus,  Mar- 
shal Budienny,  is  reported  to  have  been  wounded  in  a  low-level 
attack  by  our  planes  on  11  Aug. 

Central  Army  Group: 

Our  offensive  in  the  Sukhinichi  area  is  slowly  gain- 
ing ground  toward  the  north.   Strong  enemy  forces  brought  up 
from  the  area  southwest  of  Moscow  launched  an  attack  east  of 
Vyazma.  Fighting  in  the  Rzhev  area  continues  with  varying  suc- 
cess. 

Northern  Army  Group: 

Local  attacks  by  enemy  troops  were  repulsed. 

2.  Finnish  Front; 

No  noteworthy  fighting  was  reported. 

3.  North  Africa: 

Artillery  and  patrol  activity  was  reported.  Because 
of  the  enemy  convoy  force,  German  motorized  units  have  been 
transferred  to  Solium  and  Marsa  Matruh.   188  German  and  173 
Italian  tanks  are  available  in  this  area. 

-152- 


CONFIDENTIAL 
14  Aug.  1942 

Items  of  Political  Importance 

In  connection  with  the  question  of  the  second  front  In  Europe,  in 
some  quarters  the  demand  is  again  being  made  that  the  project  be 
treated  with  restraint  or  even  dropped  altogether.   U.S.  Ambassador 
Stanley  in  Moscow  is  said  to  have  made  very  bitter  remarks  about 
the  Anglo-American  failure  to  keep  the  promise  given.   Churchill's 
secretary  is  quoted  as  saying  that  the  heavy  Allied  ship  losses, 
which  are  much  more  ser-ious  than  officially  admitted,  are  an  important 
factor  in  this  problem. 

India; 

The  Indian  situation  greatly  preoccupies  Britain's  allies,  and  has 

reportedly  led  them,  particularly  the  U.S.A.  and  China,  to  urge 

Britain  to  come  to  terms  with  India.   The  earlier  proposal  that  the 

Russians,  Americans',  and  Chinese  jointly  guarantee  India's  indepen- 
dence -  after  the  war,  of  course  -  is  again  being  mentioned. 

Japanese  circles  expect  that  further  German  successes  in  Egypt  and 
in  the  Caucasus  will  not  fail  to  influence  the  attitude  of  the 
Moslems  in  India.   But  even  these  Japanese  sources  warn  against 
over-estimating  the  importance  of  the  present  unrest  in  India. 

Lisbon  watches  the  developments  in  India  with  interest  because  of 
their"  possible  effect  on  Portuguese  possessions  in  that  area. 

Russo-Japanese  Relations: 

Russo-Japanese  relations  are  receiving  more  attention  in  Allied^dis- 
cussions.   U.S.  circles  are  convinced  that  the  next  target  of  a 
Japanese  attack  will  be  Vladivostok,  and  not  Australia   or  Hawaii. 
The  decisive  moment  will  come  after  the  fall  of  Stalingrad. 

According  to  information  from  Chungking,  some  52  new  divisions 
brought  up  from  Japan  and  Indo-China  are  now  stationed  on  the  Si- 
berian -Manchurian  border.   China  will  open  an  offensive  the  moment 
the  Japanese  forces  are  withdrawn  from  the  Chinese  front  for  op- 
erations against  Russia. 

• 

Great  Britain: 

On  15  Aug.  the  Production  Minister  declared  once  again  that  the  com- 
ing 80  days  will  be  the  hardest  in  Britain's  history.   In  Russia, 
the  Volga  life  line  is  imperiled;  in  Egypt,  bitter  fighting  will 
break  out  within  the  next  few  weeks.   To  give  his  listeners  some  en- 
couragement, Lyttleton  added  that  in  July  the  Allied  merchant  ship 
losses  decreased,  while  the  number  of  German  submarines  destroyed 
increased  and  greatly  exceeded  the  previous  average.   Great  Britain 
will  attempt  to  disrupt  German  submarine  production  by  attacks  on 
submarine  yards  and  bases. 

South  America: 

According  to  Italian  press  reports  from  Buenos  Aires,  the  U.S.A.  in- 
tends to  establish  a  naval  base  at  the  La  Plata  estuary.  Such  a  base 
would  constitute  a  "direct  strategic  threat  to  Argentina.  So  far,  Uru- 
guay has  ceded  the  following  bases  to  the  U.S.A.:  Maldonado,  Colonia, 
Piriapolis,  Punta  del  Lobos,  Coriti,  Punta  del  Este,  and  Montevideo. 


-153- 


CONFIDENTIAL 
14  Aug.  1942 

Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  Report  by  the  Deputy  Chief ,  Naval  Staff  Quartermaster  Division! 

1.  Group  North  has  submitted  a  detailed  and  comprehensive  re- 
port on  Baltic  Sea  warfare  in  1941.   The  work  was  prompted  by  a  re- 
quest of  the  Nautiku3  for  a  contribution  on  this  subject.  The 
Fuehrer  showed  interest  in  the  report  and  expressed  his  appreciation 
of  the  effective  work  performed  with  such  amazingly  scanty  means. 

2.  The  Minister  for  Armaments  and  War  Production  reported  to 
the  Fuehrer  on  the  labor  situation,  pointing  out  that  the  withdrawal 
of  shipyard  workers  and  specialists  for  all  phases  of  submarine  war- 
fare jeopardizes  the  completion  of  other  essential  items.   The 
Fuehrer,  however,  decided  that  his  directive  should  remain  in  force. 
However,  the  personnel  of  the  naval  yards  is  to  be  screened  once 
more  for  the  purpose. 

The  Chief,  Naval  Staff  orders  the  Naval  Construction  Division  to 
keep  him  informed  on  schedules  governing  the  allocation  of  workers. 

II.  Report  by  the  Chief,  Naval  Ordnance  Division 

1.  There  is  friction  between  the  Commanding  Admiral,  Norway 
and  the  Commanding  General,  Armed  Force3,  Norway. 

2.  The  Fuehrer  order  is  discussed  which  provides  that  in  the 
interest  of  limited  military  aid  to  Japan,  deliveries  to  Japan 
should  not  be  made  dependent  on  any  economic  conditions,  either 
financial  or  in  connection  with  patent  rights.   In  loading  submarine 
I  "30",  the  Japanese  have  been  making  extensive  use  of  German  gener- 
osity. 

3.  The  40,000,000  Mark  deficit  from  the  construction  cost  of 
the  new  cruiser  "L"  delivered  to  the  Russians  is  to  be  transferred 
to  a  trust  company  designated  for  this  purpose. 

4.  The  guns  of  the  first  15  cm  turret  on  a  German  destroyer 
have  been  harmonized. 

5.  The  Commanding  Admiral,  Group  North  has  expressed  appre- 
ciation to  the  Mining  and  Barrage  Inspectorate  for  its  smooth  co- 
operation in  placing  at  the  disposal  of  Group  North  24,000  mines 
and  6,000  anti-sweeping  devices. 

III.  The  Chief  of  the  Underwater  Obstacles  Branch,  Naval  Ordnance 
Division  reports  that  no  new  firing  devices  have  been  found  on  the 
enemy  mines  investigated"  in  Marsa  Matruh. 

IV.  The  Chief,  Naval  Staff  states  that  no  definite  indications  of 
an  attack  on  Russia  could  be  found  in  the  large  number  of  Japanese 
reports. 

In  a  Very  Restricted  Circle; 

V.  The  Chief,  Foreign  Affairs  Section,  Naval  Staff  Operations 
Division  reports  on  the  question  of  the  treatment  of  Germans  in 
Guatemala  and  their  repatriation  from  that  country,  raised  by  the 
Commander  in  Chief,  Navy,  as  well  as  on  the  Fuehrer's  approval  of 
the  French  proposal  to  use  3  French  submarines  for  supplying  the 

-154- 


CONFIDENTIAL 
14  Aug.  1942 

unoccupied  part  of  Madagascar.   For  details  see  War  Diary,  Part  C, 
Vol.  VIII. 

VI.  Report  by  the  Chief,  Operations  Branch,  Naval  Staff  Operations 
Division: 

—  ~  .4 

1.  The  question  of  giving  up  the  German  positions  on  Crete 
has  become  acute  in'  view  of  the  fact  that  the  Italians  proposed  to 
the  Armed  Forces  High  Command  that  they  take  over  the  entire  island. 
They  argue  that  the  progress  of  operations  in  North  Africa  will 
make  it  necessary  to  assign  large  Italian  troop  contingents  to 
Crete  and  this,  in  turn,  calls  for  the  establishment  of  a  corps 
headquarters  on  that  island.   The  Armed  Forces  High  Command  Opera- 
tions Staff  intends  to  use  delaying  tactics  until  the  arrival  of 
Italian  troops  makes  a  decision  inevitable.   According  to  a  com- 
munication from  the  Permanent  Representative  of  the  Commander  in 
Chief,  Navy  at  the  Fuehrer  Headquarters,  the  Fuehrer  showed  little 
inclination  to  change  his  dissenting  opinion  on  this  matter  when 
the  question  of  Crete- was  discussed  at  the  conference  on  the  sit- 
uation, although  Vice  Admiral  Kran eke  set  forth  the  Naval  Staff's 
views  on  the  subject.   The  Chief,  Naval  Staff  will  raise  the  issue 
again  at  his  next  report  to  the  Fuehrer. 

2.  The  Commanding  Admiral,  Group  South  has  informed  Antonescu 
about  the  ordered  reorganization  of  the  naval  operations  head- 
quarters in  the  Rumanian  area;  this  report  is  being  submitted.  The 
German  Ambassador  in  Bucharest  has  asked  for  a  copy.   The  Command- 
ing Admiral,  Group  South  will  comply  with  the  request,  making  sure 
that  the  Foreign  Office  does  not  prematurely  notify  the  Armed 
Forces  High  Command  or  the  Fuehrer.  ' 

3.  According  to  information  from  Admiral  Nomura,  the 
Japanese  do  not  intend  to  launch  operations  against  Siberia.  This 
information  should  not  be  taken  as  absolutely  reliable,  because 
experience  has  proved  that  Admiral  Nomura  is  by  no  means  always 
aware  of  all  plans  of  the  Japanese  High  Command. 

4.  The  brief  report  on  the  disagreements  in  the  question  of 
transports  in  the  Black  Sea  area  is  recorded  in  War  Diary  12  and 
13  Aug. 

5.  According  to  a  presumably  erroneous  report  from  the  Air 
Force  Operations  Staff,  the  African  Panzer  Army  has  already  started 
its  further  attack  operations. 

6.  Group  North  has  very  grave  doubts  as  to  the  facts  con- 
cerning convoy  PQ  18.  vEither,  as  reported  by  the  press  on  10  Aug., 
the  convoy  has  already  entered  its  ports  of  destination,  proceed- 
ing unnoticed  under  the  cover  of  fog  via  the  shortest  route — a 
possibility  which  the  Naval  Staff  considers  rather  unlikely — or 
the  first  and  only  location  report  by  submarine  U  M407H  was  er- 
roneous.  Group  North  has  issued  directions  to  the  Admiral,  Arctic 
Ocean  and  the  5th  Air  Force  suggesting  the  following  methods  for 
intercepting  the  convoy  with  at  least  some  amount  of  certainty: 

a.  A  constant  submarine  patrol  should  be  posted  in  the  Den- 
mark Strait  at  the  ice  boundary,  extending  as  far  to  the  west  asl 
possible. 

b.  The  patrols  off  the  Olga  Strait  and  southwest  of  Spits- 
bergen are  to  be  withdrawn. 

-155- 


CONFIDENTIAL 
14  Aug.  1942 

c.  All  available  submarines  in  the  Harstad-Kirkenes  area, 
including  those  provided  for  operation  Sunderland"  and  for  mine 
operations,  should  be  held  ready  to  depart. 

d.  Single  long-range  fighters  equipped  with  radar  should 
make  additional  reconnaissance  flights  over  the  Bear  Island  area. 

Group  North  gives  its  authorization  for  starting  operation  "Wunder- 
land"  on  15  Aug. 

The  Fuehrer  was  informed  of  this  operation  by  Vice-Admiral  Krancke 
and  did  not  object.   The  air  reconnaissance  which  is  to  precede 
the  operation  is  already  under  way. 


Special  Items; 

I.  The  Naval  Liaison  Officer  to  the  Army  High  Command  has  sub- 
mitted the  answers  of  the  18th  Army  and  Group  North  to  the  Naval 
Staff's  request  for  investigation  of  the  chances  of  an  artillery 
attack  on  Russian  light  naval  forces  in  the  Kronstadt  Bay  harbors. 

(See  War  Diary  17  Jul.  and  10  Aug.).   The  answer  is  that  artillery 
fire  with  air  observation,  which  appears  doubtful  in  view  of  the 
strong  Russian  anti-aircraft  defenses,  can  only  be  successful  if 
large  quantities  of  ammunition  are  employed  in  the  operation.  Un- 
observed fire  is  not  very  promising  either,  since  the  targets  are 
small.  The  probability  of  hitting  a  single  submarine  has  been 
calculated  at  0.96^  per  100  rounds.   An  air  attack  promises  more 
success.   If  a  special  allocation  of  ammunition  can  be  obtained, 
flat-trajectory  fire  from  heavy  artillery  could  support  the  op- 
eration by  holding  down  the  anti-aircraft  fire. 

II.  An  intelligence  report  from  Sweden  of  30  Jul.  contains  the 
following  statements  about  the  establishment   of  a  second  front  and 
other  fronts: 

"It  was  learned  from  a  very  reliable  source  that  for  about  the  last 
8  weeks  discussions  have  been  under  way  in  England  between  the 
U.S.A.,  Great  Britain, and  Russia  about  the  establishment  of  a 
second  front  and  possibly  additional  fronts.  "The  main  points  in 
the  plan  are  reported  to  be  the  following: 

"1.   Energetic  action  against  Finland. 

"2.   Landings  in  northern  Scandinavia  for  the  purpose  of 
cutting  communications  between  Finland  on  the  one  hand  and  Nor- 
way and  Sweden  on  the  other. 

"3.  Attacks  by  waves  of  planes  on  French  localities  on 
which  an  agreement  has  been  reached  with  France  in  Switzerland. 

"4.  Delivery  of  arms  to  the  French,  Belgian,  and  Dutch  pop- 
ulations in  the  occupied  area  in  preparation  for  Anglo-American 
landings. 

"The  discussions  revealed  considerable  differences  of  opinion. 
The  plans  worked  out  by  the  staffs  are  being  examined  by  a  com- 
mittee of  the  Anglo-American  and  Russian  Army  High  Commands.   It 

-156- 


CONFIDENTIAL 
14  Aug.  1942 

Is  taken  for  granted  that  work  on  the  details  of  the  plans  will 
continue  all  through  August  so  that  the  establishment  of  a  second 
or  any  additional  fronts  cannot  be  expected  before  September.  It 
is  said  that  materiel  required  for  these  operations  is  not  yet 
available  in  sufficient  quantity.   Also  the  underground  air  bases 
established  in  southern  England  are  said  to  be  still  insufficient- 
ly developed  for  this  task." 

It  is  to  be  assumed  that  these  purely  military  pre- 
parations are  being  carried  out  regardless  of  the 
political  decision  concerning  the  establishment  of 
additional  fronts  in  Europe. 


Situation  14  Aug.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

South  Atlantic : 

According  to  a  Daventry  report,  Allied  planes  encountered 
a  German  warship  in  the  South  Atlantic.   The  report  reads  as  fol- 
lows:  "The  pursuit  seems-  to  have  started  on  the  evening  of  11  Aug. 
when  the  cruisers  picked  up  distress  signals  from  a  ship  under  at- 
tack some  1,000  miles  east  of  Rio  de  Janeiro.   As  soon  as  the 
cruisers  appeared  on  the  scene,  the  German  warship  broke  off  her 
attack  and  fled.   The  cruiser-based  planes  took  up  the  pursuit  and 
succeeded  in  spotting  the  warship  for  a  second  time." 

At  the  same  time  newspapers,  including  the  London  Times  and  the 
New  York  Times,  were  spreading  the  news  that  U.S.  naval  forces, 
supported  by  planes,  have  engaged  in  a  systematic  search  for  a  Ger- 
man warship  in  the  South  Atlantic.   As  previously  reported  by  our 
radio  intelligence,  no  British  naval  forces  were  available  for 
rendering  aid  to  the  British  steamer  DALHOUSIE  to  which  all  these 
reports  undoubtedly  refer.   According  to  the  short  signal  received 
at  2156,  ship  "23"  has  in  the  meantime  reported  capturing  the  DAL- 
HOUSIE. 

2.  Own  Situation: 

In  the  above-mentioned  short  signal,  ship  "23"  also  re- 
ported that  she  was  shifting  her  operations  area  to  the  large 
quadrant  GM. 

The  Naval  Staff  confirmed  the  message  via  Radiogram  0100  of  15 
Aug. 

Since  nothing  unusual  has  since  been  observed  and  more  than  3  days 
have  elapsed  between  the  start  of  the  pursuit  and  the  date  of  the 
short  signal,  it  may  be  concluded  that  the' situation  for  ship  "23" 
is  clear  for  the  time  being.   However,  a  stricter  surveillance  of 
the  South  Atlantic  is  to  be  expected.   The  resulting  consequences 
must  be  taken  into  account. 

-157- 


CONFIDENTIAL 
14  Aug.  1942 

All  vessels  In  foreign  waters  were  informed  about  the  enemy  re- 
ports via  Radiogram  1907.   Radiogram  2301  contains  other  enemy- 
reports,  further  information  about  the  Freetown  report  of  5  Aug. 
on  the  sinking  of  a  British  steamer  by  a  PT  boat,  and  the  state- 
ment that  the  capture  of  the  GLOUCESTER  CASTLE  by  ship  "28" 
might  offer  an  explanation  for  the  Freetown  report.   Further  in- 
formation on  the  enemy  situation  v/as  issued  via  Radiogram  0415. 


II.   Situation  West  Area 

1.  Enemy  Situation; 

According  to  an  intelligence  report  from  unoccupied  ■ 
France  and  Spain  received  via  Paris  dated  14  Aug.,  an  all-out 
attack  of  strong  enemy  forces  on  German  submarine  bases  on  the 
Atlantic  coast  is  pending. 

2.  Own  Situation: 

Atlantic  Coast: 

The  Air  Force  Operations  Staff  reports  that  on  13  Aug. 
a  German  BF  110  plane  shot  down  a  British  bomber  over  the  Bay  of 
Biscay. 

No  incidents  occurred  in  connection  with  the  naval  situation. 

Channel  Coast : 

At  0145  a  German  convoy  sighted  5  enemy  motor  gunboats 
off  Cape  Gris  Nez.  When  fired  upon  by  a  patrol  vessel,  the  PT 
boats  turned  away.  A  simultaneous  long-range  artillery  attack 
resulted  in  4  hits  in  the  midst  of  the  convoy,  so  that  it  may  be 
possible  that  the  motor  gunboats  were  observers  for  the  artillery. 
(See  Telegram  1850.) 

From  0315  to  0325  a  force  of  2  patrol  vessels,  "707"  and  "704", 
had  an  engagement  with  2  enemy  motor  gunboats  off  Jersey.  After 
receiving  15  observed  hits,  the  motor  gunboats  withdrew  in 
southeasterly  direction.   Our  vessels  suffered  light  damage  and 
casualties.   (See  Telegram  1740.) 

Mine  operations  of  the  4th  and  5th  PT  Boat  Flotillas  as  well  as 
the  transfer  of  the  2nd  PT  Boat  Flotilla  to  Ijmuiden  and  execu- 
tion of  mine  operation  "Bonifacius",  are  set  for  the  night  of 
14  Aug. 

Operation  "Bonifacius"  is  one  of  the  mine-laying  operations  planned 
by  Group  Vilest  in  accordance  with  a  suggestion  by  the  Naval  Staff 
(see  War  Diary  4  May)  as  a  flank  cover  which  would  make  the  Channel 
routes  safe  for  our  vessels  and  protect  our  convoys  from  enemy 
motor  gunboats  and  mines.   The  minefields  to  be  laid  are  "Caesar 
I",  "Caesar  II",  "Bonifacius",  "Bruno  I",  "Bruno  II",  "Klara", 
"Anton  I",  "Anton  II",  and  "Fritz".   They  will  be  located  in  the 
center  of  the  Strait  of  Dover. 

3.  Special  Items: 

a.   Upon  the  report  by  the  Chief  of  the  14th  Subchaser 

-158- 


CONFIDENTIAL 
14  Aug.  19  42 

Flotilla  about  its  engagement  with  enemy  motor  gunboats  and  gun- 
boats off  Cape  Gris  Nez  on  the .night  of  20  Jul.  (see  War  Diary, 
21  Jul.),'  the  Commander  in  Chief,  Navy  expressed  his  special 
recognition  to  the  Chief  of  the  Flotilla,  Lt.  Comdr.  Wunderlich 
and  to  the  captain  of  subchaser  "1415",  Lt.  Perleberg. 

b.    Group  West  agrees  with  the  views  of  the  Naval  Staff  con- 
cerning enemy  landings  in  the  west  area,  as  set  forth  in  its  sit- 
uation* report  (see  War  Diary  20  Jul.).   The  Group  reports  that  the 
Army  has  in  the  meantime  received  such  large  reinforcements  that 
every  submarine  base,  for  example,  will  be  defended  by  one  division, 
which  can  be  reinforced  by  one  or  more  strong  reserve  tank  units 
within  a  very  short  time. 

The  Air  Force,  too,  has  received  reinf oroements .   In  view  of  these 
facts  and  of  the  daily  progress  in  the  construction  of  field  forti- 
fications, the  Commanding  General,  Armed  Forces,  West  is  now  con- 
vinced that  even  if  the  enemy  succeeds  in  gaining  a  foothold  in 
one  place  or  another,-  he  will  be  throv/n  out  again  very  soon.   The 
Commanding  General,  Armed  Forces,  West  therefore  fully  agrees  with 
the  Commanding  Admiral,  Submarines  that  no  naval  installations 
must  be  destroyed  without  prior  consultation  with  the  Group  Com- 
mand and  the  Commanding  Admiral,  Submarines.   The  Navy  has  almost 
exhausted  the  possibilities  of  improving  its  defense  measures 
against  enemy  landings.   In  the  opinion  of  Group  West,  it  is 
necessary  not  only  to  assign  another  torpedo  boat  flotilla  and  an- 
other motor  mine  sweeper  flotilla  to  the  west  area,  in  addition  to 
the  6th  Motor  Mine  Sweeper  Flotilla,  but  also  to  introduce  certain 
new  measures  in  the  radar  and  the  radio  communication  intercept 
services,  to  supply  heavier  armor-plating  and  more  arms  for  the' 
forces  of  the  Commanding  Admiral,  Defenses,  West,  to  rearm  the  PT 
boats,  etc.   The  Naval  Staff  has  informed  its  Quartermaster  Divi- 
sion and  Communications  Division  of  these  requests  and  has  asked 
them  to  take  the  necessary  steps. 

At  this  opportunity,  Group  West  calls  the  attention  of  the  Naval 
Staff  to  the  difficult  fuel  situation  which  prohibits  many  opera- 
tions otherwise  desirable  for  purposes  of  reconnaissance  and  de- 
fense of  the  coastal  waters.   The  laying  of  the  flanking  mine- 
fields has  already  made  it  necessary  to  draw  in  advance  on  the 
contingents  reserved  for  the  coming  months.   The  Naval  Staff  Opera- 
tions Division  will  examine  the  fuel  question,  as  requested  by 
Group  West,  in  cooperation  with  the  Naval  Staff  Quartermaster  Divi- 
sion. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea:  • 

Enemy  Situation; 

No  noteworthy  reports  have  been  received. 

Own  Situation: 

Enemy  air  operations  on  the  night  of  13  Aug.  lead  to  the 
assumption  that  mines  were  dropped  off  the  Dutch  coast,  as  well  as 

-159- 


CONFIDENTIAL 
14  Aug.  1942 

off  the  German  Bight  coast.   3  grpund  mines  were  swept  north  of 
Terschelling  and  1  was  swept  south  of  Den  Helder.   Toward  noon, 
enemy  planes  damaged  lightship  "5"  on  the  Wester-Schelde.   The 
ship  has  been  towed  in.   Naval  anti-aircraft  guns  shot  down  2. 
Spitfires.   Execution  of  mine  operation   "SW  102"  by  the  8th  Motor 
Mine  Sweeper  Flotilla  is  set  for  the  night  of  14  Aug.   Convoy  op- 
erations proceeded  as  planned  without  incidents. 


2. 


Norway,  Arctic  Ocean; 

Enemy  Situation: 

According  to  an  intelligence  report,  on  5  Aug.  a  convoy 
of  15  loaded  ships  entered  Reykjavik.   Radio  Intelligence  inter- 
cepted messages  from  4  vessels  in  the  southern  and  2  in  the 
northern  approach  to  the  Gorlo  Strait. 

Own  Situation: 

Mine-sweeping  and  convoy  operations  In  the  area  of  the 
Commanding  Admiral,  Norway  proceeded  as  planned,  with  no  incidents 
to  report. 

On  12  Aug.  an  enemy  battery  on  the  Rybachi  Peninsula  unsuccessfully 
fired  on  a  convoy  proceeding  from  Petsamo  to  Kirkenes.  The  route 
between  Kristiansand  South  and  Stavanger  is  again  open  to  shipping. 
Additional  findings  about  the  steamer  GEORG  L.  M.  RUSS  lead  to  the 
assumption  that  she  sank  as  a  result  of  a  submarine  attack. 

For  the  directive  of  Group  North  to  the  Admiral,  Arctic  Ocean,  based 
on  its  estimate  of  the  situation  v/ith  regard  to  convoy  PC;  18,  see 
Conference  on  the  Situation  with  the  Chief,  Naval  Staff.   The  present 
disposition  of  the  submarines  for  an  attack  on  convoy  PQ  18  is  being 
discontinued.  At  noon,  the  submarines  began  to  withdraw  at  most 
economical  cruising  speed.   Submarines  U  "457"  and  U  "403"  have 
been  ordered  to  occupy  positions  in  the  Denmark  Strait.  2  sub- 
marines will  be  posted  in  the  area  south  of  Spitsbergen,  1  north  of 
Novaya  Zemlya,  1  for  patrolling  the  Matochkin  Shar,  and  1  for 
patrolling  the  Kara  Strait.   Durings  its  attempt  to  refuel  sub- 
marine U  "255",  the  BV  "138"  developed  engine  trouble  and  had  to  be 
towed  away. 


IV.   Skagerrak.  Baltic  Sea  Entrances,  Baltic  Sea 

On  the  night  of  13  Aug.,  numerous  enemy  planes  dropped  mines 
in  the  entrances  and  the  western  part  of  the  Baltic  Sea. 

At  0630  a  tug  sank  southwest  of  the  Drogden  light  buoy  as  a  result 
of  a  ground  mine.  At  1135  the  steamer  POLLUX  struck  a  mine  in  the 
mined  area  off  Swinemuende  and  is  being  towed  in.   The  transport 
from  Aalborg  to  Oslo  has  departed.   The  transports  from  Danzig  to 
Finland  are  proceeding  as  scheduled. 

An  enemy  submarine  unsuccessfully  attacked  a  convoy  en  route  be- 
tween Helsinki  and  Reval.  .Submarine  chase  is  under  way.   Mine- 
sweeping  and  convoy  operations  in  the  area  of  the  Commander,  Mine 
Sweepers,  Baltic  Sea  are  proceeding  according  to  plan  without  in- 
cidents. 

-160- 


CONFIDENTIAL 
14  Aug.  1942 

The  Commanding  Admiral,  Baltic  Countries  reports  that  on  the  night 
of  10  Aug.  8  TMB  mines  were  laid  in  the  Kronstadt  Channel.   The 
operation  was  executed  without  enemy  interference  or  observation. 
For  details  see  Telegram  1605. 


V.   Merchant  Shipping 

1.  During  the  week  from  26  Jul.  to  1  Aug.  the  ore  shipments 
from  Lulea  dropped  further,  reaching  146,185.9  tons,  the  year's 
lowest  figure  for  weekly  ore  shipments.   Time  and  again  there  we^e 
not  enough  ships.   3  German  and  25  Swedish  ships  were  used  for 
these  shipments. 

2.  The  British  Admiralty  reports  that  23  British  shipyards 
which  were  closed  during  the  depression  have  been  reopened.   A 
discussion  of  this  report,  as  well  as  of  other  foreign  shipping 
news,  is  contained  in  Brief  Report  No.  25/42  of  the  News  Series 
"Foreign  Merchant  Shipping". 


VI.   Submarine  Warfare 

1.  Enemy  Situation: 

A  bombing  attack  on  a  periscope  was  reported  from* a  lo- 
cation 220  miles  south  of  Iceland.   A  submarine  sighting  report 
was  intercepted  from  330  miles  west  of  Porcupine  Bank. 

Off  the  American  east  coast,  submarine  sighting  reports  were  in- 
tercepted from  the  area  northwest  of  Cape  Breton  and  230  miles 
southeast  of  Halifax. 

2.  Own  Situation: 

For  the  regrouping  of  the  submarines  stationed  in  the 
north  area  see  Situation,  Arctic  Ocean. 

So  far,  group  "Loss"  has  failed  to  intercept  the  convoy  in  the 
North  Atlantic  which  was  located  by  the  radio  intercept  service. 
Submarine  U  "705"  sighted  a  northwestbound  convoy  in  quadrant 
AL  4812  but  lost  sight  of  it  in  a  rain  squall.   Submarine  U  "256" 
apparently  met  part  of  the  convoy  with  a  destroyer  in  quadrant 
AL  4493  but  failed  in  her  attack  on  the  vessels.   The  operation 
is  being  continued. 

Submarine  U  "598"  intercepted  a  westbound  convoy  of  15  tankers  in 
quadrant  DN  4781  and  launched  a  surface  attack  on  the  vessels, 
scoring  2  hits.   The  submarine  was  unable  to  observe  further 
effects  of  the  attack. 

6  submarines  operating  in  the,  South  Atlantic  are  being  assembled 
into  Group  "Bluecher".   The  group  is  to  take  up  attack  positions 
in  the  area  extending  from  quadrant  CE  93  to  quadrant  CF  85  and  to 
-proceed  southward  in  patrol-line  formation  in  order  to  intercept 
unescorted  ships  and  convoys. 

-161- 


CONFIDENTIAL 
14  Aug.  1942 

Submarine  U  "331"  departed  from  Spezia  to  the  western  Mediterranean 
for  operations  against  the  main  group  of  the  returning  enemy  forces. 
Submarines  U  "73"  and  U  "205"  have  been  assigned  waiting  positions 
in  quadrants  CJ  76,  78,  and  75.   In  the  eastern  Mediterranean,  sub- 
marine U  "83"  is  concentrating  her  operations  on  the  area  north  of 
Port  Said,  and  submarine  U  "73"  on  the  area  east  of  the  longitude 
of  quadrant  CP  5146  and  north  of  the  latitude  of  quadrant  CP  5298. 
For  further  details  see  supplement  to  the  submarine  situation  in  War 
Diary,  Part  B,  Vol.  IV. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

During  the  day  our  air  forces  carried  out  armed  recon- 
naissance missions  and  fighter-bomber  raids  over  localities  on  the 
coast.   Ipswich  was  raided  on  the  night  of  14  Aug.   Only  a  few  in- 
cursions were  made  by  enemy  planes  over  Norway,  Holland,  and  Bel- 
gium. 

2.  Mediterranean  Theater: 

No  reports  have  so  far  been  received  about  any  planes 
shot  down  during  the  attack  on  the  enemy  convoy. 

Reconnaissance  missions  were  flown  over  the  central  and  eastern 
Mediterranean. 

Photographic  reconnaissance  was  carried  out  over  harbors  in  the 
eastern  Mediterranean. 

Air  raids  were  made  on  enemy  airfields  in  North  Africa.   Enemy 
fighters  from  Malta  have  appreciably  intensified  their  activity. 

3.  Eastern  Front : 

58  enemy  planes  were  shot  down  by  the  forces  support- 
ing the  Army  operations.   In  the  Black  Sea,  2  coastal  vessels  were 
sunk  and  1  small  tanker  was  damaged.  During  the  enemy  air  raid  on 
airfields  of  the  Kerch  Peninsula  in  the  night  of  12  Aug.  anti- 
aircraft guns  brought  down  21  of  the  attacking  planes. 


VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation: 

At  1730  a  battleship  of  the  RODNEY  class  and  an  air- 
craft carrier  of  the  ILLUSTRIOUS  class,  as  well  as  6  destroyers, 
entered  Gibraltar,   According  to  an  intelligence  report  from  Spain, 
the  carrier  was  heavily  damaged  on  both  sides.   The  FURIOUS  left 
dock  at  2035.   In  the  night  of  13  Aug.  the  escort  forces  return- 
ing from  Malta  passed  through  the  Strait  of  Sicily  in  westerly 
direction.   Air  reconnaissance  spotted  them  repeatedly  while  they 
were  proceeding  at  high  speed  off  the  Tunisian  and  Algerian  coast. 
At  1310  the  force,  consisting  of  2  cruisers  and  5  destroyers,  was 
located  32  miles  northwest  of  Cape  Bougaroun.   At  1110  another 

-162- 


CONFIDENTIAL 


14  Aug.    1942 


destroyer  which  was  returning  alone  was  located  30  miles  east  of 
La  Galite.   At  1000  Italian  air  reconnaissance  reported  that  the 
force,  with  an  aircraft  carrier,  vras  heading  west  30  miles  north 
of  Cape  de  Fer.   This  would  mean  that  the  fourth  aircraft  carrier, 
which  was  not  located  for  quite  some  time,  has  been  intercepted. 
Another  unidentified  vessel  proceeding  alone  on  a  westerly  course 
was  sighted  by  an  Italian  submarine  62  miles  north-northeast  of 
Cape  Serrat  at  2050.   In  the  morning  German  air  reconnaissance 
sighted  a  large  merchant  ship  in  tow  and  a  vessel  which  v/as  assumed 
to  be  an  aircraft  carrier  but  was  definitely  not  the  UNICORN  40 
miles  west-southwest  of  Malta.   Details  are  lacking.   At  1630  a 
German  plane  sighted  a  large  ship  with  no  superstructure,  as  well 
as  another  large  ship  and  2  small  vessels,  proceeding  at  low  speed 
on  an  easterly  course  in  approximately  the  same  area.   This  force 
was  later  spotted  for  a  second  time  16  miles  west-southwest  of 
Malta.   Photographic  reconnaissance  carried  out  over  Valletta  at 
1830  showed  apparently  no  additional  ships  in  the  harbor.   How- 
ever, the  reconnaissance  was  incomplete  since  part  of  the  harbor 
was  concealed  by  a  smoke  screen.   It  might  be  that  a  damaged 
tanker  entered  the  harbor  in  the  meantime. 

According  to  a  French  report  to  the  German  Armistice  Commission, 
France  500  survivors  from  the  cruiser  MANCHESTER  and  from  3 
tankers  were  set  ashore  near  Cape  Bon.   They  stated  that  the 
MANCHESTER  was  sunk  during  the  night  of  12  Aug.   The  stern  of  the 
aircraft  carrier  which  had  been  sighted  north-northeast  of  Cape 
Blanc  on  the  afternoon,  of  12  Aug.  and  v/as  assumed  to  be  the  WASP 
was  in  flames.   Some  time  afterv/ards  the  fire  appeared  to  subside. 
No  further  reports  concerning  the  whereabouts  of  this  vessel  have 
been  received.  ' 

According  to  a  press  report  from  Algeciras,  the  EAGLE  had  22 
fighters  and  8  single-engined  biplanes  on  board.   The  same  source 
reports  the  sinking  of  the  British  destroyer  WRESTLER.  According 
to  a  Reuter  report  from  Cairo,  U.S.  bomber  crev/s  contend  that  on 

10  Aug.  they  damaged  3  Italian  cruisers  riding  at  anchor  in  the 
vicinity  of  Navarino.. 

As  for  the  eastern  Mediterranean,  in  the  morning  German  air 
reconnaissance  sighted  1  cruiser,  7  escort  vessels,  2  tankers,' and 
3  steamers  on  a  southerly  course  25  miles  north-northeast  of  Port 
Said,  as  well  as  a  large  steamer  lying  to  just  east  of  Port  Said. 
According  to  an  Italian  sighting  report,  a  submarine  was  west  of 
Crete.   In  addition  to  the  French  vessels  the  number  of  which  is 
unchanged,  photographic  reconnaissance  showed  6  escort  vessels, 

11  small  warships,  1  hospital  ship,  2  tankers,  and  10  steamers  in 
Alexandria  and  1  warship  dummy,  2  cruisers,  4  destroyers,  6  sub- 
marines, 1  tanker,  and  27  steamers  in  Port  Said.   1  cruiser,  4 
destroyers,  6  submarines,  55  steamers,  9  tankers,  and  5  trans- 
ports were  in  Suez.   Merchant  tonnage  has  increased  by  about 
110,000  GRT  since  8  Aug. 

2.    Own  Situation,  Mediterranean: 

In  the  night  of  13  Aug.,  2  PT  boats  were  sent  to  operate 
against  the  force  of  light  vessels  returning  west.   Due  to  engine 
trouble,  the  PT  boats  Tf/ere  unable  to  reach  their  area  of  operations 
in  time  and  gave  up  the  attack. 

-163- 


CONFIDENTIAL 
14  Aug.  1942 

On  the  afternoon  of  13  Aug.  enemy  submarines  torpedoed  the  Italian 
cruisers  BOLZANO  and  ATTENDOLO  off  the  Lipari  Islands.   The 
ATTENDOLO  has  arrived  in  Messina.   The  BOLZANO  was  beached  and  will 
be  towed  into  port. 

An  Italian  destroyer  has  been  sent  into  the  area  south  of  Pantel- 
leria  for  operations  against  damaged  enemy  vessels.   2  damaged 
Italian  PT  boats  were  beached  south  of  Cape  Bon.   13  Italian  sub- 
marines are  in  the  operations  area.   An  Italian  PT  boat  reports 
scoring  a  torpedo  hit  on  a  destroyer  belonging  to  the  enemy  escort 
force  returning  from  Malta  off  Cape  Bon. 

At  1800  2  boats  of  the  3rd  PT  Boat  Flotilla  were  sent  from  Porto 
Empedocle  for  an  attack  on  the  apparently  damaged  enemy  vessels 
sighted  southwest  of  Malta. 

In  the  night  of  13  Aug.  enemy  planes  carried  out  heavy  raids  on 
Tobruk  and  Marsa  Matruh  without  damaging  military  or  naval  in- 
stallations. 

The  Italian  Liaison  Staff  with  the  German  Naval  Staff  has  trans- 
mitted a  list  of  successes  scored  by  the  Italian  Navy  in  its  op- 
erations against  the  convoy  force.   The  Italian  Navy  claims  the 
following  successes:   the  sinking  of  the  cruiser  MANCHESTER  by  a 
motor  torpedo  boat,  the  torpedoing  of  the  FURIOUS  and  of  3 
cruisers  by  submarines,  the  torpedoing  of  another  cruiser  by  a 
motor  torpedo  boat,  the  sinking  of  1  tanker  and  2  steamers  by  sub- 
marines and  of  2  tankers  by  subchasers,  as  well  as  the  torpedo- 
ing of  an  unidentified  vessel  by  a  submarine  and  of  2  steamers, 
one  of  them  18,000  GRT,  by  subchasers.   For  copy  of  the  communica- 
tion see  Telegram  1800. 

3.  Transport  of  Supplies  to  North  Africa: 

The  transport  of  supplies  to  North  Africa  has  been  re- 
sumed.  The  motor  ship  RAVELL0  departed  from  Taranto  and  the  motor 
ship  LERICI  left  Brindisi,  both  bound  for  Benghazi. 

The  tanker  STIGE  and  the  steamers  SP0RTIV0  and  BIANCHI  left  Crete 
for  Tobruk.   The  steamer  F0SC0L0  left  Athens  for  Benghazi. 

Transport  of  supplies  along  the  North  African  coast  proceeded  as 
planned,  with  no  incidents  to  report. 

959  tons  were  unloaded  in  Tobruk  on  11  Aug.  and  1,109  tons  on  12 
Aug. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

The  destroyer  ZG  "3M  departed  from  Navarino  for  Suda  for 
an  escort  assignment  but  had  to  return  to  port  because  of  engine 
trouble. 

All  restrictions  on  movements  of  unescorted  small  vessels,  with  the 
exception  of  passenger  vessels,  have  been  lifted. 

-164- 


CONFIDENTIAL 
14  Aug.    19  42 

Black  Sea: 

Enemy  Situation: 

An  intelligence  report  from  a  French  source  states  that 
on  12  Aug.  15  Russian  warships  of  various  types,  including  tankers, 
were  interned  by  the  Turks  in  the  harbor  of  Samsun. 

Own  Situation: 

No  incidents  were  reported  from  the  Black  Sea. 

Special  Items: 

a.   Group  South  has  considered  the  possible  action  of 
the  Russian  Black  Sea  fleet  after  the  Germans  have  occupied  the 
coast  up  to  Tuapse  and  after  the  evacuation  now  in  progress  has  been 
terminated.   Group  South  has  issued  the  necessary  directives  to 
the  subordinate  commands,  and  requested  the  Air  Force  to  take  the 
necessary  steps.   In  the  opinion  of  Group  South,  most  likely  the 
ships  will  be  disarmed,  the  guns  and  the  personnel  employed  in  land 
operations,  and  the  vessels  /will  then  be  sunk.   The  group  assumes 
that  the  submarines  will  in  any  case  remain  in  the  Black  Sea  and 
will  be  able  to  continue  operations  for  another  month  or  two  after 
the  occupation  of  the  last  Russian  base.   The  Group  does  not  ex- 
pect the  Turks  to  interfere  with  any  attempt  of  the  Russian  mer- 
chant fleet  to  break  through  into  the  Mediterranean. 

In  view  of  this  situation,  Group  South  considers  it  necessary^  that 
the  Air  Force  concentrate  its  attacks  on  Poti  and  Batum,  that'  photo- 
graphic reconnaissance  be  carried  out  continuously  in  order  to 
discover  the  Russian  intentions  in  time,  and  that  air  reconnaissance 
be  extended  for  the  same  purpose,  as  well  as  for  the  purpose  of 
protecting  our  transports  of  supplies.   When  the  time  comes,  German 
and  Italian  naval  forces  should  be  prepared  to  intensify  their 
operations  from  Tuapse.   For  copy  of  the  corresponding  telegram 
see  l/Skl  19958/42,  Gkdos.  in  War  Diary,  Part  C,  Vol.  XlVa. 

In  connection  with  the  same  problem,  Group  South  believes  that  Ad- 
ditional German  minefields  in  the  approaches  to  the  straits  will 
be  effective  only  if  laid  in  Turkish  territorial  waters.   The  task 
can  therefore  be  carried  out  only  in  agreement  with  Turkey  and  at 
her  request.   The  order  for  the  naval  and  air  forces  to  attack  the 
Russian  warships  if  they  try  to  break  through  holds  even  if  the 
attack  is  made  within  Turkish  territorial  waters.   Group  South  ex- 
pects that,  in  case  the  Russian  vessels  break  through  the  straits, 
the  necessary  forces  will  be  placed  at  the  disposal  of  the  Admiral, 
Aegean  Sea  in  time  and  planes  will  be  sent  into  action,  primarily 
in  the  Black  Sea,  in  adequate  numbers.   For  the  time  being  it  is 
not  intended  to  redistribute  our  forces  In  the  Black  Sea  with  a 
view  to  these  anticipated  developments,  in  order  not  to  interfere 
with  the  main  tasks. 

The  Naval  Staff  will  take  a  stand  on  the  matter. 

b.    In  reply  to  the  request  of  Group  South  for  mine-sweeping 
planes  against  magnetic  mines  in  the  Sea  of  Azov,  the  Naval  Staff 
asks  the  Group  to  reconsider  once  again  whether,  in  view  of  the 

-165- 


CONFIDENTIAL 
14  Aug.  1942 

small  number  of  available  planes  of  this  type,  the  request  is  neces- 
sary and  justified.   The  Naval  Staff  points  out  that  the  mine- 
sweeping  planes  must  not  be  used  against  German  magnetic  mines,  that 
magnetic  mines  with  acoustic  firing  devices  cannot  be  easily  swept, 
and  that,  under  certain  conditions,  it  might  be  possible  to  have 
specialists  among  the  war  prisoners   remove  the  Russian  mines  with 
the  aid  of  such  means  as  are  available.  (See  Telegram  1027.) 

c.  Without  making  reference  to  the  above  directive,  Group 
South  again  requests  that  several  mine-sweeping  planes  be  im- 
mediately allocated  in  order  to  speed  up  the  sweeping  of  Russian 
magnetic  mines  in  the  Caspian  Sea  and  off  the  east  coast  of  the 
Black  Sea.   In  this  new  request,  Group  South  refers  to  a  statement 
by  the  4th  Air  Force,  according  to  which  mine-sweeping  planes  can 
be  obtained  from  the  Commander  in  Chief,  Air  Force  immediately  upon 
request. 

It  is  inconceivable  how  the  4th  Air  Force  could  make 
such  an  incorrect  statement. 

d.  In  reply  to  the  Naval  Staff's  directive  mentioned  under 

b,  Group  South  quotes  a  report  by  the  Naval  Shore  Commander,  Ukraine, 
stating  that  the  presence  of  magnetic  mines  has  been  confirmed  by 
a  number  of'  eye-witnesses,  and  that,  in  addition,  acoustic  mines 
were  laid  during  the  last  mine-laying  operations  by  warships  during 
the  day  and  night  of  8  Aug.   The  latter  statement  is  confirmed  by 
the  fact  that  so  far  the  mine  hits  on  the  landing  craft  and  Siebel 
ferries  occurred  aft.  Group  South  has  ordered  experts  to  investi- 
gate the  matter. 


IX.   Situation  East  Asia 

The  Japanese  Headquarters  issued  an  official  communique  about 
the  losses  suffered  by  the  enemy  off  the  Solomon  Islands  up  to  14 
Aug.   Sunk:  13  British  and  American  cruisers,  9  destroyers,  3  sub- 
marines, 10  transports. 

Heavily  damaged:   1  cruiser,  3  destroyers,  1  transport. 

Japanese  losses  are:   2  cruisers  damaged,  21  planes  lost. 

The  U.S.  Navy  Department  reports  that  the  operations  in  the  Solomon 
Islands  area  are  being  continued.  According  to  press  reports  from 
MacArthur's  headquarters,  the  Allied  fleet  is  engaged  in  very  heavy 
fighting. 


-166- 


CONFIDENTIAL 
14  Aug.  1942 

X.   Army  Situation 

1.  Russian  Front: 

Army  Group  A; 

South  of  Krasnodar,  our  troops  forced  a  crossing  over 
the  Kuban  River  at  4  points.   The  large  oil  field  near  Khadikhenskaya 
was-  cnossed.   Slovak  divisions  have  pushed  forward  as  far  as  the 
Krasnodar-Khadikhenskaya  oil  pipeline.   The  upper  course  of  the 
Byelaya  River  has  been  reached.   2  panzer  divisions  of  the  force 
advancing  toward  the  south  were  diverted  to  the  east.   The  1st 
Mountain  Division  reached  Teberda  and  seized  Uchkulan  and  Kursuk 
at  the  fooc  of  the  Elbrus  Mountain.   Parts  of  the  23rd  Panzer  Divi- 
sion occupied  Georgievsk  and  advanced,  together  with  other  units, 
southward  as  far  as  Baksansk. 

On  the  front  of 'Army  Group  A,  the  enemy  lost  309,000  prisoners,  522 
tanks,  550  guns,  637  anti-tank  and  141  anti-aircraft  guns  between 
1  Jul.  and  10  Aug. 

Army  Group  B; 

Attacks  against  the  right  wing  of  the  4th  Panzer  Army 
from  the  direction  of  Lake  Tsatsa  were  repulsed,  as  were  attacks 
from  the  north  on  German  and  Rumanian  positions.   The  XXIV  Panzer 
Corps  is  being  brought  up  to  .reinforce  the  right  wing  of  the  4th 
Panzer  Army.   In- the  5th  Army  area,  the  Italian  motorized  division 
was  replaced  by  the  79th  Infantry  Division.   The  enemy  renewed  his 
heavy  attacks  against  the  eastern  and  northern  fronts  of  Voronezh. 
After  temporary  enemy  penetrations,  the  attacks  were  repulsed.  Partic- 
ularly heavy  were  the  attacks  southeast  of  Yelets  where  a  penetra- 
tion had  to  be  sealed  off. 

Central  Army  -Group : 

i 

The  thrust  toward  Byelev  and  the  operation  in  the  Sukhin- 
ichi  area  were  slow  in  gaining  ground  against  strong  enemy  resist- 
ance.  East  of  Vyazma  the  enemy  again  penetrated  into  our  positions. 
Only  little  ground  could  be  gained  by  our  thrust  east  of  Gzhatsk. 
East  of  Sychevka,  superior  enemy  forces  succeeded  in  pushing  for- 
ward as  far  as  the  region  of  Karmanov.   Northeast  of  Rzhev,  superior 
enemy  forces  penetrated  our  withdrawn  positions,  and  succeeded  in 
reaching  the  Rzhev-Staritsa  road  at  one  point.   In  view  of  the  un- 
broken offensive  power  of  the  enemy,  the  situation  at  the  Central 
Army  Group  is  extremely  critical. 

Northern  Army  Group; 

Enemy  attacks  against  the  land  bridge  of  the  II  Army 
Corps  south  of  Staraya  Russa  were  resumed  from  the  north  and  the 
south.  From  the  south  the  enemy  succeeded  in  penetrating  our 
lines,  necessitating  a  counterattack  on  our  part. 

2.  Finnish  Front : 

Isolated  enemy  reconnaissance  thrusts  on  the  southeastern 
and  northeastern  fronts  were  shattered.   At  the  Loukhi  and  Kandal- 1 
aksha  sectors  the  enemy  is  digging  in. 

-167- 


CONFIDENTIAL 
14  Aug.  1942 

3.   North  Africa; 

In  the  night  of  13  Aug.  advance  enemy  scout  troops  were 
repulsed  at  the  northern  sector  of  our  front. 


-168- 


CONFIDENTIAL 
15  Aug.  1914.2 

Items  of  Political  Importance 

No  official  reports  are  available  with  regard  to  the  question  of 
a  second  front  in  Europe  and  the  visit  of  the  Anglo-American 
statesmen  to  Moscow  in  this  connection.  It  seems  to  he  certain 
that  Churchill  travelled  via  Cairo  and  Teheran.   According  to  the 
Dally  Mail,  the  British  consider  that  sending  the  10th  Army  to 
the  Caucasus  would  be  an. act  of  desperation  which  would  deprive 
the  forces  in  Egypt  of  their  last  support. 

Concerning  the  Russo-Japanese  relations,  an  Informant  reports  that 
the  usual  border  clashes  in  Manchuria  have  decreased  considerably, 
a  fact  which  is  being  interpreted  as  a  sign  of  Russia's  yielding 
attitude,  which  is  understandable  enough.   Although  Japanese 
military  preparations  in  Manchuria  are  well  advanced,'  it  is  not 
expected  that  Siberia  will  be  attacked  this  year. 

The  situation  in  India  does  not  show  any  decisive  developments. 

France; 

The  Government  categorically  denies   an  assertion   of   a  foreign 
source  that   Petain  would  issue   a  declaration  about  France's 
position  in  case   of   an  Anglo-American   landing   on  French  soil. 

It   is   obvious   that   such  declarations  will  not  be 
issued  before   it  has  become   clear  what   turn  the 
events   are  going  to   take  J 

U.S.A.: 

Roosevelt's  message  to  Churchill  on  the  anniversary  of  the  Atlantic 
Charter  reemphaslzes  that  the  Charter  agreement  and  the  realization 
of  its   principles  will  remain  the  basis   of  Allied  policy. 

Chile: 

The  President  of  Chile  will  visit  the  U.S.A.  in  October. 


Special  Items : 

I.   During  the  conference  between  the  Chief  of  Staff,  Naval  Staff 
and  Admiral  Nomura,  the  latter  touched  upon  the  strategic  problems 
in  the  Indian  Ocean,  saying  that  he  expects  Japan  to  be  able  to 
start  operations  in  the  eastern  part  of  the  Indian  Ocean  toward 
the  end  of  August  or  In  September  and  then  carry  them  Into  the 
western  Indian  Ocean.  The  Admiralty  in  Tokyo  attributes  to  the 
Indian  Ocean  as  much  importance  as  does  the  Naval  Staff.  Admiral 
Nomura  hinted  that  the  operational  tasks  would  be  divided  as  follows: 
India:  Japanese  sphere;  Near  East:  German  and  Italian  sphere; 
all  three  powers  would  cooperate  strategically. 

The  Chief  of  Staff,  Naval  Staff  pointed  out  that  a  common  front 
in  the  Indian  Ocean  is  the  focal  point  of  the  over-all  strategy  in 
this  war. 


-I69- 


CONFIDENTIAL 


15  Aug.   191+2 


As  for  the  supplies  which  submarine  I  W30M  Is  supposed  to  take 
along,  the  Japanese  Admiral  requested  that  finanolal  problems  and 
any  other  formalities  be  set  aside. 

For  minutes  of  the  conference  see  l/Skl  I  opa  I590A2  Gkdos.  Chefs. 
in  %ar  Diary,  Part  C,  Vol.  XV. 

II.  Group  South  transmitted  the  following  statements  made  by  the 
French  Naval  Attache  in  Sofia  to  the  Chief  of  Staff,  Group  South: 

1.  The  French  Admiralty  believes  that  the  Japanese  lost, 
among  other  ships,  I4.  aircraft  carriers  In  the  battle  off  Midway, 
which  means  that  the  balance  of  power  in  the  Pacific  has  been 
restored. 

2.  The  French  Admiralty  assumes  that  the  British  will  take 
steps  to  prevent  the  maneuverability  of  the  French  fleet  stationed 
in  Alexandria,  unless  Egypt  Is  occupied  very  quickly  by  a  surprise 
move. 

3.  The  French  Admiralty  believes  that  it  has  certain  infor- 
mation indicating  that  the  Americans  are  in  possession  of  a  very 
effective  torpedo  plane  equipped  with  a  new  type  of  torpedo.  The 
French  Naval  Attache  has  no  knowledge  of  the  details  of  this  new 
weapon.  It  may  be  that  the  torpedoes  are  equipped  with  acoustic 
warheads. 


Situation  15  Aug.  19^2 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

The  Naval  Attache  in  Buenos  Aires  reports  that  on  9  Aug. 
the  steamer  QUEEN  ELIZABETH  carrying  troops  in  khaki  arrived  in 
Rio  de  Janeiro. 

An  intelligence  report  supplements  the  information  about  the  de- 
parture of  a  convoy  from  Freetown  in  the  direction  of  Cape  Town 
on  1  Aug.,  stating  that  the  escort  consisted  of  2  battleships, 
2  destroyers,  and  1  aircraft  carrier. 

Indian  Ocean: 

According  to  an  intelligence  report  from  Athens,  2  large 
convoys,  one  British  and  one  American,  carrying  troops  and  tanks 
are  expected  to  arrive  in  the  Middle  East  between  20  and  30  Aug. 
It  is  not  yet  sure  whether  the  U.S.  convoy  will  proceed  to  the 
Red  Sea. 

2.  Own  Situation: 

In  reply  to  an   inquiry  by  the  Naval  Staff,    the  Naval 
Attache   in  Tokyo  communicated  the   ports   of   departure  and  destination 
and  the   cargo   of   the  HERBORG   and  the  MADRONO  (see  Telegram  1000). 

The  Naval  Staff   transmits   sailing   orders  for  the  auxiliary  supply 


-I70- 


CONFIDENTIAL 
15  Aug.  1942 

ship  PASSAT  to  Group  West.   The  ship  is  to  depart  from  the  harbor 
of  western  France  during  the  new-moon  period  in  September  upon 
special  orders  from  Group  West.   She  is  to  supply  ship  "23"  and,  ■ 
if  possible,  "28".   Thereupon  she  is  to  get  edible  fats  from 
Japan  and  bring  them  to  western  France.   At  30°  W  the  Naval  Staff 
takes  over  command. 

For  copy  no.  4  of  the  sailing  order  see  l/Skl  I  k  1553/42  Gkdos. 
Chefs,  in  War  Diary,  Part  C,  Vol.  I. 

The  Naval  Staff  transmits  to  the  High  Command  of  the  Italian 
Naval  Forces  in  the  Atlantic  (Betarom)  and  to  Group  West  the  sailing 
order  and  recognition  signal  table  for  the  Italian  blockade -runnel 
PIETRO  0RSE0L0.   The  ship  is  to  bring  her  cargo  to  Japan  and  to  re- 
turn to  western  France  with  a  cargo  of  essential  materials  for 
Italy  and  Germany. 

Group  West  will  determine  her  date  of  departure.   The  Naval  Staff 
will  take  over  command  at  30°  W. 

For  copy  no.  4  of  the  sailing  order  see  l/Skl  I  k  1528/42  Gkdos. 
Chefs,  in  War  Diary,  Part  C,  Vol.  I. 

On  the  evening  of  14  Aug.  Daventry  broadcast  the  following  announce- 
ment in  Dutch: 

"Allied  cruisers  encountered  a  German  warship  in  the  southern  part 
of  the  Atlantic  Ocean.  A  fierce  battle  ensued.  The  pursuit  seems 
to  have  begun  Tuesday  late  in  the  evening  when  the  cruisers 'received 
distress  signals  from  a  ship  attacked  some  1,000  miles  east  of  Rio 
de  Janeiro.  As  soon  as  the  cruisers  appeared  on  the  scene,  the 
German  v/arship  broke  off  her  attack  and  fled.  Planes  on  board  our 
cruisers  took  up  the  pursuit  and  succeeded  in  spotting  the  warship 
again.   The  battle  continues". 

The  Naval  Staff  does  not  think  that  the  enemy  has  any  indication 
of  the  whereabouts  of  the  auxiliary  cruiser. 

■i 

This  information  is  being  transmitted  to  ship  "23"  and  to  all 'ves- 
sels in  foreign  waters  via  Radiogram  1429,  along  with  the  following 
directive: 

The  Naval  Staff  authorizes  ship  "23"  to  shift  her  operations  area. 
It  recommends  a  temporary  withdrawal  on  account  of  the  search 
undertaken  by  the  enemy.   The  ship  should  act  according  to  her  own 
discretion,  since  she  probably  has  a  better  knowledge  of  the  enemy 
situation  through  her  radio  service  than  is  at  present  available 
to  the  Naval  Staff. 

The  SCHLIEMANN  has  been  ordered  to  depart  immediately  from  her 
waiting  area  on  a  southeasterly  course  and  to  take  up  position  in 
a.  waiting  area  within  a  250  mile  radius  of  a  point  8°  farther  south 
than  point  "Seide"  and  in  the  same  longitude. 

Orders  to  this  effect  were  sent  to  the  CHARLOTTE  SCHLIETvIANN  via 
Radiogram  1832. ~ 

Radiogram  1914  informs  all  vessels  in  foreign  waters  that  the 
French  have  been  authorized  to  use  3  Frenr"  submarines  from  Dakar 
for  maintaining  contact  with  Madagascar,     that  the  British 

-171- 


CONFIDENTIAL 
15  Aug.  1942 


fleet  operation  in  the  Mediterranean  is  nearing  its  end. 
The  vessels  are  told  that  a  comprehensive  report  will 
follow  as  soon  as  the  facts  can  be  surveyed. 

The  German  Armistice  Commission,  France  communicates  the 
positions  of  the  French  vessels  via  Telegram  1120, and  the 
German  Naval  Command,  Italy  transmits  the  positions  of  8 
Swedish  ships  via  Telegram  2400. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

It  is  noticeable  that  rumors  about  enemy  landings 
in  the  west  area  in  the  next  few  weeks  or  in  the  first  half 
of  September  are  again  cropping  up.   Arcachon  near  Bordeaux, 
Les  Sables  d'Olonne  near  St.  Nazaire,   and  La  Panne  near 
Ostend  are  mentioned  as  landing  areas.   It  looks  as  if 
all  these  rumors  were  being  spread  on  purpose.   According 
to  an  intelligence  report  from  Portugal,  on  10  Aug.  an 
Irish  steamer  sighted  a  southbound  convoy  consisting  of  4 
troop  transports,   5  destroyers,  and  3  corvettes  400  miles 
south  of  Mizen  Head   (Ireland).   The  steamer  saw  German 
planes  attack  the  convoy. 

2.  Own  Situation; 

Atlantic  Coast; 

2  ground  mines  were  swept  off  St.  Nazaire  and  on 
the  convoy  route. 

Channel  Coast; 

The  mine  operation  of  the  4th  and  5th  PT  Boat 
Flotillas  in  the  night  of  14  Aug.   was  executed  according 
to  plan.   For  brief  report  see  Telegrams  0730  and  0733. 
The  5th  PT  Boat  Flotilla  had  no  encounter  with  the  en- 
emy.   One  group  of  the  4th  PT  Boat  Flotilla  maintained 
contact  with  a  force  of  enemy  motor  gunboats  for  a  short 
while,  but  none  of  the  opponents  opened  fire.   2  boats 
of  the  2nd  PT  Boat  Flotilla  have  transferred  to  Boulogne 
and  5  to  Ijmuiden.   Shortly  after  midnight  a  German  con- 
voy en  route  from  Boulogne  to  Dunkirk  had  an  engagement 
with  enemy  PT  boats  off  Cape  Gris  Nez  and  was  also  fired 
upon  by  the  British  long-range  battery  at  St.  Margaret  on 


-172- 


CONFIDENTIAL 
15  Aug.  1942 


Cliff.   The  batteries  "Todt",   "Grosser  Kurfuerst",   and 
an  Army  battery  returned  the  fire.   It  is  also  certain 
that  a  harbor  patrol  vessel  west  of  Dunkirk  succeeded  in 
hitting  3  enemy  motor  gunboats  approaching  from  the  west. 
The  enemy  withdrew  under  a  smoke  screen  without  returning 
fire.   For  brief  report  see  Telegram  1415.   At  0340  an 
Army  post  south  of  Barfleur  was  attacked  with  hand  gren- 
ades and  small  arms.   Pursuit  of  the  enemy  in  the  dark- 
ness was  unsuccessful.   After  dawn,   footprints  and  a 
trail  indicating  the  presence  of  some  6  men  and  a  rubber 
boat  were  found  on  the  beach. 

Mine  operation  "Bonifacius"  was  executed  as  planned.  Mine 
operation  "Akkord"  is  scheduled  for  the  night  of  15  Aug. 


III.  North  Sea,  Norway,  Arctic  Ocean 
1.   North  Sea: 

.  Enemy  Situation: 

4 

The  steamer  and  convoy  traffic  along  the  south- 
eastern and  eastern  coasts  was  as  usual. 

Own  Situation: 

Mine  operation  "Erasmus  102"  was  carried  out  on 
the  night  of  14  Aug.   according  to  plan.    5  ground  mines 
were  swept  off  the  Frisian  Islands  on  15  Aug.   Convoy  op- 
erations in  the  area  of  the  Commanding  Admiral,  Defenses, 
North  proceeded  as  scheduled. 

At  noon  enemy  reconnaissance  planes  flew  over  the  Wilhelms- 
haven  and  Oldenburg  area.   In  the  afternoon  36  enemy  planes 
attacked  vessels  of  the  Rhine  flotilla  off  Domburg.   1  ves- 
sel has  been  lost.   4  Spitfires  were  shot  down. 

2#   Norway,  Arctic  Ocean: 

Enemy  Situation: 

Reconnaissance  in  the  Arctic  Ocean  failed  to  yield 
any  tactical  results. 


-173- 


CONFIDENTIAL 
15  Aug.  19i+2 

Own  Situation; 

A  Russian  mine  was  swept  southwest  of  Mageroe.   A 
Russian  rubber  boat,  presumably  from  the  Russian  submarine  attacked 
off  Kiberg  on  10  Aug.,  was  found,  on  11  Aug,  It  is  assumed  that 
aerial  mines  were  dropped  in  the  Brei  Sound.   3  Swedish  ships  author- 
ized to  sail  overseas  departed  from  Krlstlansand  South.   Convoy 
operations  in  the  area  of  the  Commanding  Admiral,  Norway  proceeded 
according  to  plan. 

The  Fleet  Commander  has  boarded  the  dispatch  vessel  HELA  at 
Trondheim. 

With  the  summer  drawing  to  a  close  and  the  nights  growing  longer, 
enemy  commando  raids  against  the  Norwegian  coast  are  again  likely 
to  occur.  Even  though  the  Commanding  Admiral,  Defenses,  North 
does  not  attribute  much  importance  to  such  raids,  our  prestige  will 
suffer  if  the  enemy  succeeds  In  damaging  our  ships  and  destroying 
coastal  installations,  and  this  fact  might  in  turn  Induce  the  enemy 
to  undertake  the  venture  more  frequently.  The  Commanding  Admiral, 
Defenses,  North  has  therefore  called  this  point  to  the  attention 
of  all  the  offices  under  his  command,  reemphasizing  the  importance 
of  systematic  counteraction  in  all  cases  where  the  enemy  attempts 
to  harass  us  or  to  land  troops.  (See  Telegram  151+0.) 

The  unexplained  sinking  of  the  steamers  BOLTENHAGEN  and  GEORG 
L.  M.  RUSS  leads  to  the  assumption  that  enemy  submarines  are 
using  torpedoes  that  leave  no  bubble  track.  Group  North  has 
requested  the  Naval  Staff  to  find  out  whether  there  are  any 
data  available  to  support  this  theory. 

The  Naval  Staff  will  issue  the  necessary  instructions. 

Group  North,  acting  in  accord  with  the  Admiral,  West  Norwegian 
Coast  and  the  Commanding  Admiral,  Submarines,  has  ordered  the 
former  to  issue  new  regulations  for  the  escort  of  submarines 
on  their  departure  route  from  Krlstlansand.  For  copy  of  the 
communication  see  l/Skl  20067/1+2  Gkdos.  in  War  Diary,  Part  C, 
Vol.  IV. 

Operation  "Wunderland" ; 

In  his  estimate  of  ll+  Aug.  the  Admiral,  Arctic  Ocean 
considers  that  the  conditions  are  favorable  for  undertaking  operation 
"Wunderland".  He  does  not  expect  that  any  enemy  forces  will  ue 
encountered  en  route  or  in  the  operations  area.  Upon  authorization 
by  Group  North,  granted  in  the  meantime,  the  Admiral,  Arctic  Ocean 
proposes  to  have  the  SCHEER  take  advantage  of  the  poor  visibility 
and  depart  with  3  destroyers  of  the  5tn  Destroyer  Flotilla  through 
the  Vest  Fjord,  simulating  a  transfer  to  Trondheim.  At  dusk, 
the  SCHEER  would  slip  out  of  the  Vest  Fjord  to  the  north  out  of 
sight  of  the  coast.  The  departure  from  the  Grimsoe  area  will  de- 
pend on  the  situation.   The  destroyers  will  then  return  to  Tromsoe 
for  refueling.   The  fleet  forces  will  be  transferred  to  the  Kaa 
Fjord  where  they  will  take  up  rendezvous  positions  according  to 
directive  from  Group  North  as  soon  as  the  operation  has  been  dis- 
covered by  the  enemy  or  shortly  before  the  SCHEER  sets  out  on  her 
return  voyage  from  the  operations  area.  If  there  are  reasons  to 
expect  enemy  countermeasures,  the  operation  will  be  discontinued. 


-I7I+- 


CONFIDENTIAL 
15  Aug.  191+2 

Therefore  whenever  an  enemy  plane  flies  over  the  ship  she  should 
report  it. 

Since  enemy  submarines  are  presumably  patrolling  the  area,  Group 
North  considers  the  departure  through  the  Vest  Fjord  undesirable 
and  recommends  the  Grimsoe  area  Instead. 

The  Naval  Staff  has  no  objections,  except  that  it 
might  be  better  to  leave  the  decision  as  to  whether 
to  continue  the  operation  or  to  break  it  off  to 
the  ship's  captain  in  order  to  avoid  an  unnecessary 
interruption  of  radio  silence. 

Group  North  issues  a  supplementary  directive  to  the  Admiral, 
Arctic  Ocean,  that  the  patrol  line  spotted  by  air  reconnaissance 
off  the  Kola  coast  on  11+   Aug.  should  be  annihilated  on  the  return 
voyage  of  the  SCHEER. 

On  the  basis  of  the.  radio  intelligence  report  from  Klrkenes,  the 
Admiral,  Arctic  Ocean  does  not  consider  the  enemy  situation  on  15 
Aug.  clear  enough  for  starting  operation  "Wunderland",  and  he 
therefore.  Intends  to  wait  a  little  longer.  Group  North,  on  the 
other  hand,  points  out  that  every  delay  is  harmful,  and  that  the 
intercepted  exchange  of  enemy  radio  messages  can  hardly  be  of  any 
significance  for  the  operation.  The  Group  states  that  an  early 
departure  under  the  cover  of  darkness  is  desirable;  if  necessary, 
the  ship  should  transfer  during  the  first  night  and  depart  on 
the  following  night. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

The  convoy  en  route  from  Aalborg  to  Oslo,  with  the  steamer 
WUKL  carrying  men  on  leave,  entered  Oslo.   Convoy  and  patrol  opera- 
tions in  the  area  of  the  Commanding  Admiral,  Defenses,  Baltic 
Sea  proceeded  according  to  plan. 

The  steamers  WOLSTJM  and  LEVANTE  carrying  convicts  and  Russian  war 
prisoners  departed  from  the  Baltic  Sea  en  route  to  northern  Norway. 

The  Armed  Forces  High  Command  Operations  Staff  has  directed  that, 
instead  of  the  5th  Mountain  Division,  the  3rd  Mountain  Division  be 
transported  from  Norway  to  Finland  by  sea.  The  transport  is  to  be 
speeded  up  by  every  possible  means. 

Convoy  operations  in  the  area  of  the  Commander,  Mine  Sweepers,  Baltic 
Sea  proceeded  without  incident • 

Enemy  planes  attacked  a  motor  mine  sweeper  group  15  miles  north- 
west of  Hungerborg.  The  motor  mine  sweeper  R  "106"  was  sunk. 


V.   Submarine  Warfare 

1.   Enemy  Situation; 

1  British  vessel  was  observed  200  miles  northwest  and 

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CONFIDENTIAL 
15  Aug.  19U2 

another  one  100  miles  south  of  Porcupine  Bank.   On  11  Aug. 
the  Dutch  submarine  C  "2I+"  was  located  off  Freetown. 

'2.   Own  Situation; 

,  7  submarines  departed  from  German  bases  and  2  from  harbors 
In  western  France. 

SuSnferine  U  "209"  in  the  Arctic  Ocean  was  notified  of  the  presence 
of  enemy  patrol  forces  in  an  area  extending  from  south  of  Novaya 
Zemlya  to  the  Kara  Strait.  Submarine  TJ  "601"  reported  the 
Ice  boundary  l60°  and  100  miles  off  Cape  Zhelaniya. 

In  the  North  Atlantic,  submarine  U  "705"  sighted  I4.  steamers  and  1| 
destroyers  in  quadrant  AL  1+527 »  and  scored  2  torpedo  hits  on  a 
large  steamer.   The  operation  against  the  convoy  in  quadrant  AL 
is  being  continued. 

Off  the  American  coast  submarine  U  "14.58"  sank  a  3,000  GRT  steamer 
in  quadrant  BB  8682. 

Contact  with  the  convoy  west  of  the  Windward  Passage  was  not 
resumed. 

No  successes  were  reported  by  the  submarines  in  the  South  Atlantic 
and  in  the  Mediterranean* 

For  further  reports  see  supplement  to  the  submarine  situation  in 
War  Diary,  Part  B,  Vol.  IV. 


VI.   Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

During  the  day  our  air  forces   carried  out  armed  recon- 
naissance flights  and  fighter-bomber  attacks   over  localities   on 
the   coast.      Sunderland  and  Great  Yarmouth  were   raided  in  the  night 
of   15  Aug. 

In   that  night,    60  to  75  ®nemy  planes  flew    over  western  German,    con- 
centrating their   attacks    on  Duesseldorf.     For   losses   and  damage 
see  daily  situation  report. 

2.  Mediterranean  Theater; 

Reconnaissance  flights  extended  over  the  entire  Mediterran- 
ean Sea.  For  results  see  Enemy  Situation,  Mediterranean.  Fighter 
thrusts  east  of  El  Alamein  failed  to  establish  contact  with  the 
enemy. 

3«   Eastern  Front; 

Reconnaissance  flights  were  carried  out  over  the  Black 
Sea,  the  Sea  of  Azov,  and  the  Arctic  Ocean.  Supporting  the  Army 
operations,  our  fighters  shot  down  38  and  our  anti-aircraft  guns 
8  enemy  planes. 


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CONFIDENTIAL 
15   Aug.    19^2 

h»        Speolal  Item3t 

The  Air  Force  Operations  Staff  has  placed  the  mine- 
sweeping  planes  and  their  crews  which  have  been  or  will  be  al- 
located to  the  Air  Force  Group  Command,  Central  Area  under  the 
administrative  command  of  the  latter  and  the  operational  command 
of  Group  North.   The  Air  Force  Group  Command,  Central  Area  has  been 
instructed  to  contact  Group  North  directly  in  order  to  arrange  for 
joint  action  with  regard  to  operations  by  mine-sweeping  planes. 
(See  Telegram  2200.) 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation,  Mediterranean; 

The  data  on  the  whereabouts  of  the  large, convoy  of  2 
battleships,  1+  aircraft  carriers,  some  JO   cruisers,  destrdyers, 
and  escort  vessels,  and  21  steamers  and  tankers,  which  departed 
from  the  Strait  of  Gibraltar  eastward  on  10  Aug.,  can  be  summarized 
as  follows: 

The  following  vessels  have  re-entered  Gibraltar: 

On  12  Aug.  -   the  FURIOUS  (in  damaged  condition)  and  3  destroyers, 
plus  1  destroyer  damaged  in  a  collision. 

On  lij.  Aug.  -   the  RODNEY,  1  damaged  aircraft  carrier  of  the 

ILLUSTRIOUS  class,  1  cruiser,  and  6  destroyers, 
2  of  them  damaged. 

In  the  night  of  lij.  Aug.  -  1  cruiser,  7  destroyers,  l\.   corvettes, 
1  of  them  damaged. 

On  15  Aug.  -   the  NELSON,  1  aircraft  carrier  of  the  ILLUSTRIOUS 
class,  I4.  cruisers,  and  10  destroyers. 

At  least  2  more  cruisers  and  5  destroyers  which  were  northwest  of 
Cape  Bougaroun  on  lij.  Aug.  are  expected  to  arrive  at  Gibraltar. 

Thus,  2  battleships,  3  aircraft  carriers,  8  cruisers,  and  36 
destroyers  and  escort  vessels  have  entered  port.  The  sinking  of 
the  EAGLE,  the  MANCHESTER,  and  the  destroyer  WRESTLER  has  been 
established  with  absolute  certainty.  Moreover,  3  tankers  or 
steamers  sunk  off  the  Tunisian  coast  have  been  identified.  i| 
steamers  and  1  tanker  were  at  Malta.  As  for  the  fate  of  the 
remaining  13  steamers,  more  information  will  have  to  be  obtained, 
possibly  from  prisoner  statements.  In  particular,  it  will  be 
necessary  to  find  out  how  many  steamers  and  tankers  actually 
belonged  to  the  convoy  from  the  very  beginning,  if  we  are  to  form 
a  clear  picture  of  the  real  extent  of  our  success.  These  figures 
are  also  Important  for  determining  whether  the  convoy  was  destined 
for  either  Malta  or  Alexandria  alone,  or  for  both  of  them. 

The  British  Admiralty  issued  a  detailed  report  on  the  convoy 
operation.  Vice  Admiral  Syfret  was  in  command  of  the  operation. 


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CONFIDENTIAL 
15    Aug.    I9I4.2 

The   report  states   that,   as  a   result    of  the   operation,   the 

British  convoy  succeeded  in  bringing  supplies   and  reinforcements, 

including   a  number   of  fighter  planes,    to  the  fortress   of  Malta. 

The    attacks  by  PT  boat  forces   in  the   Strait    of  Sicily  were   identified 

as   such,  and  movements    of   the  Italian  cruiser  division,   as  well  as 

the  2  torpedo  hits   on  the  2  cruisers,   were  correctly   observed. 

It   is   claimed   that   1  submarine  was   definitely   and  another  probably 

sunk.      The    loss    of  the -MANCHESTER  is   admitted. 

Washington  denies  any  participation   of  American  vessels   in  the 
Mediterranean   operation. 

2.        Own  Situation,   Mediterranean; 

The  2  German  PT  boats    operating   in   the   area  off   Malta 
failed  to   sight   any  enemy  vessels. 

A  belated  report  states   that   in   the  night   of   12  Aug.   6   light 
enemy  vessels   fired  on  the  harbor   installations    of  Rhodes. 

3»        Transport   of   Supplies   to  North  Africa; 

The   transport   of   supplies  from  Italy  and  Greece  to 
North  Africa  and   along  the  North  African  coast   proceeded  accord- 
ing  to  plan.     No  incidents  have  been   reported. 

1,007   tons  were  unloaded  in  Tobruk   on  13  Aug.   and  730   on   ^h  Aug. 

I+.   Area  Naval  Group  South; 

Aegean  Sea; 

Convoy  operations   proceeded  as   planned.     Destroyer 
ZG    "3"   entered  Suda   on  the  evening   of   ll;  Aug. 

Black  sea; 

While   leaving  Yeisk,    one   of    the  vessels    of  the  motor 
mine   sweeper  group  was   sunk  by  a  mine,     further    statements  by 
Russian  deserters   unanimously  assert  that  the   last   Russian  war- 
ships  to  leave    laid  magnetic   and  acoustic   mines   in  the  approaches 
to  Yeisk. 

Referring  to  the  motor  mine  sweeper   lost   off  Yeisk,  Group  South 
points   out   once  again  that    It   is  highly  probable   that  there  are 
Russian  magnetic  and  acoustic   mines   in  these  waters.      The  Group 
therefore  requests   that  mine-sweeping   specialists   with  the 
necessary  equipment  and   planes  be  dispatched  to  Mariupol.     It 
is    of   Importance  for  mine-sweeping    operations   in  any   of  the 
eastern  Black  Sea  harbors   to  ascertain   the  type   of  mines   and 
mine-sweeping  methods   used  by  the   Russians.      (See  Telegram  2100.) 

If   the  weather   improves,   the   1st    PT  Boat  Flotilla  will  be  sent 
into  action   off  Tuapse   and   the   Italian  subchaser  flotilla   off 
Novorossisk.      3  Italian  submarines  are    to  transfer  from  Constanta 
to  Ivanbaba. 

On    the  basis    of  intelligence   reports  Group  South  reports   that   in 
answer   to   an  inquiry  by  the  U.S.   Ambassador  in  Ankara   as   to  what 


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CONFIDENTIAL 


15  Aug.    19i^2 


measures  Turkey  might  be  expected  to  take  If  Russian  naval  forces 
enter  a  Turkish  harbor,  the  Turkish  Government  declared  un- 
equivocally that  it  will  proceed  in  accordance  with  international 
maritime  law. 

According  to  the  experience  with  the  Russian  fleet  In  the  Baltic 
Sea  and  the  personal  experience  of  the  former  Naval  Attache  in 
Moscow,  the  Naval  Staff  expects  the  Russian  fleet  to  fight  to 
their  last  round  of  ammunition  in  the  defense  of  Batum  and  then  to 
scuttle  those  vessels  which  escaped  destruction  in  the  battle. 
Since  Turkey  is  Incapable  of  interning  the.  Russian  fleet,  it  might 
also  try  to  continue  warfare  from  some  bay  in  Turkish  territorial 
waters,  taking  along  large  quantities  of  supplies.  An  attempt  to 
break  through  the  Dardanelles  appears  hopeless,  and  therefore 
unlikely.  A  few  runaway  vessels  might  go  into  voluntary  internment. 
The  same  applies  to  the  Russian  merchant  fleet.  The  Naval  Staff 
communicates  these  views  to  Group  South,  with  copies  to  the  Naval 
Representative  on  the  Armed  Forces  High  Command  Operations  Staff, 
the  Naval  Liaison  Officer  to  the  Army  General  Staff  and  the  Naval 
Liaison  Officer  to  the  Air  Force  Operations  Staff.  (See  Telegram  I919.) 

The  Air  Force  Operations  Staff  has  ordered  the  transfer  of  1 
mine-sweeping  plane  hitherto  employed  by  the  3rd  Air  Force,  to- 
gether with  its  crew,  to  Mariupol  for  a  temporary  assignment 
with  the  l+th  Air  Force.  The  J+th  Air  Force  is  to  work  out  the 
operations  schedule  for  the  plane  in  direct  consultation  with 
Group  South.  The  Naval  Staff  has  instructed  the  latter  accordingly. 

All  sorts  of  rumors  are  circulating  in  the  Army  about  the  start 
of  supply  transport  movements  from  Taganrog,  and  these  must  be' 
investigated.  It  Is  being  asserted  that  the  Navy  refused  to  start 
the  transport  of  supplies  from  Taganrog  because  of  the  uncertain 
mine  situation  and  the  Russian  gunboat  menace,  whereupon  the 
Siebel  ferry  battalion  ventured  the  crossing  on  Its  own,  with- 
out the  Navy's  permission.   The  Naval  Staff  has  requested  Group 
South  to  submit  the  report  of  the  Naval  Shore  Commander,  Ukraine 
along  with  its  own  report  on  this  subject. 


VTII.  Situation  East  Asia 

The  report  of  the  Admiral,  Tokyo  summarizes  the  results  of 
the  Naval  battle  off  the  Solomon  Islands  as  follows: 

1.  On  7  Aug.  naval  land-based  planes  damaged  2  destroyers, 
one  of  which  sank  later. 

2.  On  8  Aug.  an  aerial  torpedo  attack  caused  the  sinking 
of  2  heavy  and  2  light  cruisers,  2  destroyers,  and  9  transports; 
2  heavy  cruisers  and  2  transports  were  set  on  fire.   One  of  these 
transports  later  sank. 

3.  In  the  night  of  8  Aug.  a  Japanese  force  consisting  of 
5  heavy  and  2  light  cruisers  and  1  destroyer  encountered  an  enemy 
patrol  of  I4.  heavy  cruisers  off  Tulagi.   The  Japanese  immediately 
launched  a  gunfire  and  torpedo  attack  in  which  2  of  the  enemy 
cruisers  were  sunk.  A  running  battle  with  another  enemy  force 

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CONFIDENTIAL 
15   Aug.    191+2 

of  6   cruisers   and  8  destroyers  east   of  the   first   one   followed. 
All  enemy  vessels,   with  the    exception   of  2  badly  damaged  destroyers, 
were  sunk.      The  combat  range  was   3,000   to  6,000  meters.      This  means 
that , only  2  cruisers  and  2  destroyers   survived  the  night  battle, 
while   2  vessels    of   the   AUSTRALIA  class,    5   of   the   SAN  FRANCISCO 
class,    and  1   of   the   OMAHA  class  were   sunk. 

I4..        On  the  morning   of  9  Aug.   a  British  cruiser   of    the 
ACHILLES  class    (not   a  battleship)   was   sunk  by  aerial   torpedoes 
100  lilies   south   of   Tulagi. 

5»        On   10  Aug.    the   remaining  enemy  naval  forces   and  transport 
fleet   were  no  longer   sighted   off   Tulagi. 

6.  Sum  total   of  the  sinkings: 

a.  Cruisers:  I4.  on  8  Aug.,   8  in   the   night   of   8  Aug., 

1  on  9  Aug.  Total:   13. 

b.  Destroyers:  1  on  7  Aug.,  2  on  8  Aug.,  6  in  the 

night  of  8  Aug.  Total:  9. 

7.  The  Admiral,  Tokyo  reports  further  as  follows: 

a.  The  fighting  continues.   Since,  however,  the 
Americans  are  not  receiving  any  supplies,  the  Japanese  Navy 
expects  the  battle  to  end  soon.   Radio  communication  with  Tulagi 
has  been  reestablished.  Enemy  reports  about  successful  seizure 
of  the  Solomon  Islands  are  incorrect. 

b.  The  Japanese  air  forces  in  Rabaul  recently  obtained 
reinforcements  which  more  than  compensate  for  the  losses  incurred. 

c.  Prior  to  and  during  their  attack  on  the  Solomon 
Islands  the  Americans  evidently  tried  to  prevent  Japanese  air 
reconnaissance  operations  by  heavier  raids  on  Rabaul,  without, 
however,  achieving  any  noteworthy  success. 

d.  South  of  Timor,  light  enemy  forces  were  sighted 
only  once;  this  was  off  Samuraki  1+  or  5  days  ago,  when  they  were 
driven  off  by  Japanese  fleet  and  air  forces.  No  landing  was  made. 

e.  On  11  Aug.  Japanese  planes  attacked  the  newly- 
built  airfield  near  Moresby  and  allegedly  destroyed  11  enemy 
planes. 

This  report  again  shows  the  excellent  training 
of  the  Japanese  forces  in  night  combat  and  their 
great  superiority  in  this  respect  over  the  enemy 
flee.ts. 


IX.   Army  Situation 

1.   Russian  Front : 


Army  Group  A: 

Pushing  farther  in  the  direction  south  of  Krasnodar,  our 

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CONFIDENTIAL 
15   Aug.    19i+2 

troops    took  Georgievsk,   Afipskaya,   and  Dmitrievka.     Advance   de- 
tachments  of   the    1st  Mountain  division   reached  the  area   10  km 
south  of   Teberda  in  the   direction   of   the  Dombai   pass.      Spearheads 
of  the   23rd  Panzer  Division  are   engaged  in  active  air   defense 
operations  northeast   of  Nalchik.      The  LII  Army  Corps    is  advancing 
from  the  Elista   area  toward  the   southeast. 

Army  Group  B; 

Air  reconnaissance  has   disclosed  that   the  enemy  is 
bringing  up  strong  forces  from  Stalingrad  against   the   right  sector 
of    the  northern  front    of  the   Panzer  Army.     The  6th  Army  launched 
an  attack   on  the  northeastern  bend  of  the  Den  River  northwest   of 
Stalingrad  with  the   intention  of   encircling  the   enemy  forces 
located  in  the   river  bend.      The   enemy  succeeded  in   reaching   the 
southern  bank   of  the  Don  River  on  both  sides    of    the  point  where   the 
Khoper  River  flows   into  the  Don.     Northwest    of   Voronezh,    a 
counterattack  by   our  troops   resulted  in   the   restoration   of   our 
previous  main   line   of  resistance.      Southeast   of  Yelets   enemy 
troops   extended  their  breakthrough  in  westerly  direction. 

Central  Army  Group; 

Little  ground  has   so  far  been  gained  by  our  thrust 
toward  the   Zhizdra  River. 

All  enemy  attacks   east   of   Vyazma  were  repulsed.     Enemy  planes 
made   it  very  difficult   for  the    31st   Division   to  take   up  its 
attack  position.     Enemy  attacks   in   the  area    south  and  north,  of 
Rzhev  were   repulsed  with  the    support   of    the   Air  Force.      Our 
troops   took  back  the   line    northeast    of   Rzhev. 

Northern  Army  Group; 

Enemy  attacks   against   the    land  bridge  southeast   of 
Staraya  Russa  were  repulsed.     Our   troops    succeeded  in  greatly 
improving  their  position   at  the  bridgehead  south  of   Soltsy. 

2.  Finnish  Front; 

Local  fighting  was  reported.   Otherwise"  there  were 
no  important  engagements. 

3.  North  Africa; 

The  planned  defense  measures  were  cancelled  in  view  of 
the  successful  aotion  against  the  enemy  convoy  in  the  Mediterranean* 
Otherwise  there  was  nothing  to  report. 

*###4HHHHt*###4KHMfrtt*HHttHMM» 


-I8I- 


CONFIDENTIAL 
16  Aug.  1942 

Items  of  Political  Importance 

In  an  article  on  the  military  situation,  the  Dagens  Nyheter  prop- 
erly emphasizes  the  German  victory  at  Tobruk  as  a  decisive  factor 
In  frustrating  the  Allied  plans  for  a  second  front.   The  promises 
to  Molotov  were  made  at  a  time  when  it  was  definitely  expected  that 
the  Germans  would  be  driven  out  of  North  Africa  before  the  end  of 
the  summer.   In  this  ca.se  the  British  fleet  would  have  been  master 
of  the  Mediterranean,  leaving  enough  ships  available  for  a  large- 
scale  operation  in  France.   Rommel's  victory  upset  all  these  cal- 
culations and  made  it  impossible  for  Russia's  allies  to  keep  their 
reluctant  promise  to  Molotov,  namely,  to  advance  the  date  of  the 
offensive  originally  planned  for  1943. 

In  one  of  the  American  periodicals,  the  British  Air  Marshal  threat- 
ens that,  as  soon  as  the  nights  are  long  enough,  a  large-scale  air 
offensive  will  be  launched  against  German  cities,  including  Berlin, 
with  the  aim  of  demoralizing  the  German  people. 

In  Britain  as  well  as  in  Amerioa  the  press  and  the  Navy  are  at  odds  0 

with  regard  to  security  regulations.'  In  London,  the  dispute  was 

caused  by  the  premature  announcement  of  the  loss  of  the  EAGLE  in 

the  Daily  Express.   In  the  U.S.A.,  the  cause  was  a  report  in  the 

Chicago  Tribune  Carelessly  revealing  information  about  the  Midway 

Island  operation. 


Speoial  Items 

I.    On  5  Aug.  the  first  military  conference  since  Japan's  entry 
into  the  war  was  held  between  the  Chief  of  the  Armed  Forces  Opera- 
tions Staff,  General  Jodl  (Artillery)  Admiral  Nomura,  and  General 
Banzai.   The  Germans  gave  a  survey  of  the  Caucasus  operation  and  of 
the  situation  in  the  Near  and  Middle  East.   Great  Britain  cannot 
afford  to  lose  the  Middle  East,  in  view  of  her  oil  interests,  the 
Arab  question,  and  the  attitude  of  Turkey.   For  this  reason  enemy 
supply  shipments  to  this  area  should  be  attacked  by  the  Germ&n  Navy 
in  the  narrow  waters  between  Africa  and  America,  by  Japan,  with  the 
aid  of  surface  foroes  if  necessary,  along  the  eastern  ooast  of  Africa. 

Once  Russia  is  beaten  the  war  will  be  decided.  Japan  can  help  by 
the  above-mentioned  operation.   The  Fuehrer,  too,  is  of  the  opinion 
that  Japan  should  not  attack  the  Russian  territory  in  the  Fax  East 
unless  she  has  definite  superiority  and  the  certainty  of  a  quick 
victory.  Otherwise  a  new  theater  of  war  would  mean  an  excessive 
burden  to  Japan. 

While  agreeing  in  principle  with  this  estimate  of  the  situation, 
Nomura  outlined  the  following  tasks  for  the  Japanese  and  the  German 
Armed  Foroes: 

for  Japan  -  India,  Australia,  and  the  Indian  Ocean 

for  Germany  -  the  Middle  East  and  the  Mediterranean. 

Preparations  by  Japan  are  in  progress,  only  the  date  remains  to  be 
fixed.   In  view  of  the  considerable  strength  of  the  British  in  the 
western  part  of  the  Indian  Ocean,  the  Japanese  fleet  can  operate 
there  only  after  careful  preparation  and  after  the  monsoon  period 


-183- 


CONFIDENTIAL 
16  Aug.  1942 

ie  over.  Japanese  submarine  operations  are  being  gradually  inten- 
sified.  Japan's  tactical  and  strategical  ideas  differ  from  those 
"held  by  Germany.   For  the  Japanese  Navy,  the  ultimate  goal  is  to 
annihilate  the  naval  forces  of  the  enemy  in  order  to  obtain  control 
of  the  seas.   Germany,  whose  surface  forces  are  weak,  must  confine 
herself  to  submarine  attacks  on  merchant  ships.   The  Japanese  Navy 
has  to  control  3  fronts:  in  the  east,  the  south,  and  the  west.  More 
would  be  too  much.   Japan  will  gradually  push  ahead  by  way  of  India, 
while  Germany  and  Italy  should  advance  similarly  in  the  Middle  East. 
Too  much  must  not  be  demanded  of  Japan. 

The  Naval  Staff  is  of  the  opinion  that  in  a  coalition 
war  the  individual  powers  must  sometimes  subordinate 
■-"  their  own  objectives  to  a  common  interest. 

General  Banzai  said  that  1  1/3  years  ago  it  was  decided  that  Japan 
should  launch  an  offensive  in  the  south  although  she  would  have 
preferred  to  attack  the  enemy  in  the  north.   Now  it  is  difficult  to 
carry  the  attack  to  the  north,  too.  The  Array  might  still  be  in  a 
position  to  do  so,  but  the  Air  Force  would  have  to  cope  with  too 
many  tasks  in  areas  too  wide  apart.   China  is  consuming  too  much 
of  the  Japanese  Air  Force.   Germany  must  give  Japan  time  for  a 
thorough  preparation.   The  German  offensive  in  Egypt  is  important. 

From  now  on,  such  discussions  are  to  be  held  approximately  every  4 
weeks. 

The  Naval  Staff  sincerely  welcomes  the  fact  that  a 
German  military  commander  of  authority  finally 
initiated  discussions  with  Japan  on  the  common 
objectives  and  task«3  of  Germany  and  Japan  in  the 
present  war.   The  Naval  Staff  has  been  constantly 
pursuing  this  course  with  notable  success,  particu- 
larly in  getting  the  Japanese  war  leaders  to  co- 
operate with  the  German  policy,  as  recognized  by 
General  Jodl  himself. 

II.  According  to  a  noteworthy  agent  report  transmitted  by  the  Air 
Force  Operations  Staff  on  5  Aug.,  a  committee  of  5  U.S.  naval  ex- 
perts surveyed  Vladivostok  and  the  Amur  Bay  in  April  1942  in  order 
to  examine  the  defensive  capacity  of  this  area  against  a  Japanese 
attack.   The  findings  were  extremely  unsatisfactory  for  the  enemy. 
Neither  by  themselves  nor  with  American  aid  would  the  Russians  be 
able  to  defend  Vladivostok.   On  the  contrary,  Japan  could  overrun 
the  entire  eastern  part  of  Siberia  as  far  as  Lake  Baikal  with  only 
30  divisions.   Thus  the  committee  had  to  confine  itself  to  determin- 
ing what  should  be  moved  in  time  to  be  saved  and  what  should  be 
destroyed.   The  situation  in  eastern  Siberia  causes  great  concern  in 
Washington,  particularly  since  the  Russians  know  how  to  use  the 
threat  of  a  separate  peace  for  extorting  any  desired  aid  from  the 
Allies.   The  entire  burden  of  the  defense  in  the  Far  East  will  have 
to  be  borne  by  the  U.S.A.,  since  the  German  view  that  the  most  im- 
portant part  of  Russia  lies  in  Asia  is  regarded  as  incorrect. 

This  is  not  a  German  view,  but  the  logical  aim  of  the 
German  policy  intended  to  bring  about  a  situation 
which  would  push  such  a  formidable  neighbor  away  from 
Europe.  After  all,  this  was  the  very  purpose  of  the 
German  attack  in  1941 i 


-183- 


16  Aug.  1942 


CONFIDENTIAL 


III.  The  negotiations  between  the  Naval  High  Command,  General  Admin- 
istration Bureau,  Recruitment  Division  and  the  Armed  Forces  High 
Command  about  further  replacements  for  the  Navy,  chances  of  which 
appear  unfavorable,  have  demonstrated  the  following: 

Replacements  required  for  the  period  from  1  Aug.  1942  to  30  Sep.  1943 : 


1.  For  shore  duty 

2.  For  shipboard  duty,  exclusive  of  submarines 

3.  For  submarines 

4.  Replacements  for  casualties,  etc. 

5.  Replacements  for  personnel  transferred  to 
shipyards 


85,500  men 
41,500  men 
18,000  men 
33,000  men 

3,800  men 
181,000 


Total  requirements,  exclusive  of  reserves 

Available: 

Of  those  already  inducted,  those  subject  to  service, 

and  the  rest  of  the  24  and  25  year  old  naval  reservists:   110,100 

Hence,  replacements  required  but  not  available  71,000 

The  effect  will  be  that  not  only  will  it  be  impossible  to  make  per- 
sonnel available  for  shore  duty,  but  any  unscheduled  requirements 
which  arise  in  the  operations  areas  will  have  to  be  met  partly  by 
withdrawing  personnel  from  shore  duty.   This  will  result  in  a  con- 
stant decrease  of  personnel,  particularly  in  naval  artillerv  and 
coastal  defenses. 

This  survey  of  naval  requirements  demonstrates  to 
what  a  critical  extent  the  expansion  of  the  war  has 
strained  our  manpower  situation.  Since  the  war  is 
expected  to  continue  for  some  time,  this  factor 
should  be  given  the  most  serious  consideration. 

IV.  A  new  Supplies  and  Fuel  Branch  has  been  established  within  the 
Naval  Staff  Quartermaster  Division,  under  Rear  Admiral  (Engineer) 
Dr.  Luettge. 

V.  According  to  a  communication  from  the  Naval  Liaison  Officer  to 
the  Air  Force  Operations  Staff  dated  12  Aug.,  the  Commander  in  Chief, 
Air  Force  has  asked  the  Commanding  General,  Armed  Forces,  South  to 
report  on  the  problem  of  mining  the  Strait  of  Sicily  through  which 
62  British  vessels  again  passed  unimpeded  on  the  night  of  11  Aug, 

When  the  Caucasian  offensive  is  finished  (in  about  3  weeks),  the 
4th  Air  Force  will  have  to  transfer  a  large  proportion  of  its  planes 
to  the  1st  Air  Force  which  in  the  meantime  is  making  preparations 
for  an  attack  on  Leningrad. 

Since  visibility  on  the  night  of  11  Aug.  was  poor,  the  enemy  air 
raid  on  Mainz  on  that  night  could  only  have  been  carried  out  by 
means  of  radio  navigation  (planes  guided  by  radio  beams). 


-184- 


CONFIDENTIAL 
16  Aug.    1942 

Since  unfortunately  no  other  mines  are  available,   the   5th  Air   Force 
has  been  ordered  to  lay  immediately  BM  1000  mines  off  Archangel. 


Situation    Ifi  Aug.    1942 

I.        War  in  Foreign  Waters 

1.  Enemy  Situation: 

Disposition  of  British  naval  forces  on  1  Aug.: 

At  home:         8  battleships,  6  aircraft  carriers,  31  cruisers 

In  Canada:        1   battleship,  1  aircraft  carrier,  1  cruiser 

U.S.  West  Coast:   1'  battleship,  5  cruisers,  3  auxiliary  cruisers 

Freetown:         1  aircraft  carrier,  4  cruisers,  8  auxiliary  cruiser 

Cape  Area:        4  cruisers 

Gibraltar:        1  aircraft  carrier,  5  cruisers 

Indian  Ocean:     5  battleships,  3  aircraft  carriers,  11  cruisers, 

6  auxiliary  cruisers 

Australia:        3  or  4  cruisers,  5  auxiliary  cruisers 

For  disposition  of  individual  vessels  see  Radiogram  2351. 

No  further  reports  have  been  received. 

2.  Own  Situation: 

At  0317  ship  "28"  6ent  a  short  signal  reporting  the  silent 
capture  and  sinking*  of  steamer  ARABISTAN  (5,874  GRT)  in  large  quadrant 
FU  and  that  she  has  shifted  her  operations  area  to  the  southern-  part 
of  the  South  Atlantic.  Since  information  at  her  disposal  is  in- 
adequate, ship  "28"  asks  for  a  report  on  the  enemy  situation. 

The  Naval  Staff  sent  its  confirmation  via  Radiogram  0511. 

This  report  is  particularly  reassuring  because  it 
proves  that  the  situation  is  still  clear  for  ship 
"28",  although  th3  American  press  has  been  spreading 
news  about  a  search  operation  by  U.S.  cruisers  in 
the  8outh  Atlantic.  The  ship's  withdrawal  to  the 
southern  part  of  the  South  Atlantic  was  absolutely 
appropriate.   The  sinking  of  the  ARABISTAN  brings 
the  total  tonnage  sunk  by  this  sucoes6ful  auxiliary 
cruiser  up  to  more  than  62,000  GRT. 


*  Silent  capture:  a  method  of  attaok  which  prevented  the  victim  from 
sending  out  radio  messages.   The  raiding  ship's  airplane  would  swoop 
down  on  the  ship  in  a  surprise  attack  and  cut  her  antennas. 


-185- 


CONFIDENTIAL 


16  Aug.  1942 


All  vessels  in  foreign  waters  are  being  notified  about  the  dispo- 
sition of  British  naval  forces  on  1  Aug.  via  Radiogram  2351,  about 
developments  concerning  Argentina's  and  Chile's  neutrality  via 
Radiogram  1141,  and  about  the  enemy  situation  via  Radiogram  1918. 

Via  Telegram  0505  the  Naval  Staff  is  sending  the  German  Admiral  in 
Tokyo  a  report  on  the  operation  against  the  Mediterranean  convoy 
for  information  of  the  Japanese  Naval  Staff. 


TT.        Sitnflt.inn    Wpr+.    Arpa 

1.  Enemy   Situation; 

According  to  radii  intelligence,  a  British  task  force  com- 
mander reported  at  2305  that  he  had  intended  to  board  a  German  ves- 
sel but  was  unable  to  do  so  because  the  vessel  was  on  fire.  Her 
crew  has  been  taken  aboard.   The  British  vessels  are  carrying  war 
prisoners. 

2.  .  Own  Situation; 

Atlantic  Coast; 

No  incidents  were  reported. 

Channel  Coast; 

At  0255,  5  vessels  of  the  4th  PT  Boat  Flotilla  entered 
Hook  of  Holland.   4  vessels  of  the  5th  PT  Boat  Flotilla  are  scheduled 
to  carry  out  a  mine  operation  on  the  night  of  16  Aug.,  and  PT  boats 
S  "104"  and  "105"  are  scheduled  to  transfer  from  Boulogne  to  Ijrauiden 
on  that  night.  Mine  operation  "Akkord"  has  been  executed  according 
to  plan.  Operations  "Fritz"  and  "Arbeiter"  are  scheduled  for  the 
night  of  16  Aug. 

At  2228  our  motor  mine  sweepers  made  contact  with  enemy  motor  gun- 
boats in  quadrant  AN  7997.  Details  are  still  lacking.   (See  also 
Enemy  Situation.) 

From  2211  to  2216  the  batteries  "Grossdeutschland" ,  "Todt",  and 
"Grosser  Kurfuerst",  as  well  as  the  702nd  Army  Artillery  Battalion 
fired  14  rounds  in  retaliation  for  the  gunfire  attack  on  our  vessels 
by  the  British  battery  at  St.  Margaret  on  Cliff.   At  2343,  the 
battery  "Grosser  Kurfuerst"  and  the  2nd  Naval  Coastal  Artillery 
Battalion  opened  fire  on  a  burning  enemy  vessel  in  quadrant  AN  79. 


f 


f 


ITT.  North  Seaf  Norway,  Arctic  Ooean 
1.    North  Sea; 

Enemy  Situation; 

No  reports  of  interest  were  received. 


-186- 


CONFIDENTIAL 


16  Aug.    1943 


Own  Situation; 

On  the  night  of  15  Aug.  enemy  planes  were  active  over  the 
German  Bight.  It  is  assumed  that  mines  were  dropped  on  the  convoy 
routes  north  of  Schiermonnikoog  and  Borkum.   Our  night  fighters 
failed  to  establish  contact  with  the  enemy.   Between  0206  and  0235 
an  enemy  courier  plane  flew  from  England  to  Sweden  via  Skagerrak. 

The  mine-detonating  vessel  "160"  which  was  proceeding  ahead  of  con- 
voy no.  1870,  consisting  of  torpedo  boat  JAGUAR,  8  steamers  total- 
ling 31,548  GRT,  3  patrol  vessels,  and  1  mine  sweeper,  en  route 
from  Hook  of  Holland  to  the  Elbe  River  sank  off  the  Dutch  coast 
after  striking  a  mine.   During  the  afternoon  enemy  planes  were  active 
over  the  Dutch  coast.  It  was  observed  that  4  bombs  or  mines  were 
dropped  in  the  North  Sea  Canal  off  Ijmuiden.  2  Spitfires  made  a 

low-level  attack  on  Schouwen  Island.  1  plane  flew  over  Wilhelm- 
shaven,  penetrating  as  far  as  the  Berlin  area,  and  returned  by  the 

same  route. 

3  ground  mines  were  swept  in  the  Borkum  area. 

Mine  operation  "SW  101"  has  been  executed  according  to  plan. 

2.  Norway ; 

On  14  Aug.  the  enemy  battery  on  the  Rybachi  Peninsula 
fired  6  rounds  on  the  entrance  to  the  Petsamo  Fjord  without  oausing 
any  damage.  On  15  Aug.  Norwegian  fishermen  sighted  a  surfaced 
Russian  submarine  east  of  Kyberg.   Single  Russian  planes  were 
operating  over  the  Arctic  coast.  , 

Protective  nets  have  been  laid  off  the  Sweden  pier  and  the  oil 
pier  in  Petsamo. 

The  mine  layer  ULM,  the  destroyer  Z  "23",  and  the  torpedo  boats 
T  "9"  and  T  "12"  passed  through  Kristiansand  South  in  northerly 
direction. 

The  areas  of  Narvik,  Tromsoe,  Hammerfest,  and  Kristiansand  South 
have  been  placed  on  first-degree  alert  on  account  of  poor  visibility. 

Convoy  and  mine-sweeping  operations  proceeded  according  to  plan 
without  noteworthy  incidents. 

3.  Arctic  Ocean: 

Enemy  Situation: 

On  15  Aug.  air  reconnaissance  spotted  3  small  steamers 
and  3  barges  in  Kharakovo  and  1  small  harbor  patrol  vessel  in  each 
of  the  bays  northwest  and  east -northeast  of  Kharakovo.   Air  recon- 
naissance also  reports  an  unbroken  thin  ice  cover  in  the  Kara  Strait. 

Own  Situation: 

Asked  by  the  Admiral,  Arctic  Ocean  on  what  basis  Group 
North  assumes  that  convoy  PQ  18  has  reached  its  port  of  destination, 
the  Naval  Staff  refers  the  Admiral  to  the  press  report,  which  the 
Naval  Staff  considers  was  released  for  deceptive  purposes,  since 
no  time  was  mentioned. 


-187- 


CONFIDENTIAL 
16  Aug.  1942 

Group  North  also  communicates  this  opinion  of  the  Naval  Staff  to  the 
Admiral,  Arctic  Ocean,  with  copy  to  the  5th  Air  Force,  stating  that 
the  Navy  and  the  Air  Force  have  exhausted  their  means  of  intercepting 
convoy  PQ  18  and  that  no  success  can  be  expected  from  carrying  on  the 
search.   According  to  Group  North,  it  is  of  foremost  importance  to 
keep  the  submarine  positions  in  the  Denmark  Strait  continuously  oc- 
cupied in  order  to  ascertain  the  departure  of  the  convoy  in  time.  As 
soon  as  the  first  definite  report  is  received,  the  submarines  posted 
in  the  harbors  must  proceed  to  take  up  positions  west  of  Spitsbergen 
or  in  the  Bear  Island  Strait  with  as  much  speed  as  visibility  and 
weather  conditions  permit.  If  necessary,  they  should  also  take  up 
positions  at  the  entrance  to  the  White  Sea.   Submarines  committed  to 
other  tasks  should  in  each  case  be  re-directed  toward  the  most  valuable 
target,  which  is  generally  a  PQ  convoy. 

The  Naval  Staff  agrees  with  this  directive. 

The  Admiral,  Arctic  Ocean  reports  that  operation  "Wunderland"  was 
started  from  the  Bogen  Bay  at  1700.  At  2300,  the  SCHEER  was  in  the 
northern  outlet  of  the  Grirasoestraumen. 

The  Naval  Staff  has  informed  Group  North,  the  Commanding  Admiral, 
Norway,  the  Fleet,  the  Commanding  Admiral,  Cruisers,  and  the  Admiral, 
Arctic  Ocean  about  the  prisoner  statements  according  to  which  convoys 
from  England  to  Archangel  started  as  early  as  1941.   During  the  winter 
of  1941-1942,  the  harbor  was  kept  open  until  the  end  of  January  by 
the  ice-breaker  LENIN  which  had  worked  all  through  the  winter  of  1940- 
1941.   Ships  dock  at  the  piers.   The  harbor  is  not  fortified.   There 
is  an  airfield  on  Keg  Island.   The  Naval  Staff  has  called  the  attention 
of  the  Air  Force  Operations  Staff  to  the  possibilities  of  a  success- 
ful operation  against  this  target. 


IV.   Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea 

1.  Enemy  Situation: 

A  Finnish  source  reports  that  on  the  evening  of  15  Aug.  an 
enemy  submarine  was  located  approximately  1  mile  north  of  Hogland 
and  that  she  was  attacked  by  Finnish  patrol  vessels. 

2.  Own  Situation: 

On  15  Aug.  the  Norwegian  steamer  LOG  (1,510  GRT)  sank  in 
the  Kaiser  Wilhelm  Canal  at  Km  86.5.  Ships  not  exceeding  10,000  GRT 
in  tonnage,  20  ra  in  width,  and  8  m  in  draft  are  able  to  pass  through 
the  canal.  The  Swedish  steamer  WARY  collided  with  another  steamer 
lying  at  anchor  off  Buelk  and  was  beached.   A  total  of  4  ground  mines 
were  swept  in  the  Fehmarn  Belt,  the  Great  Belt,  and  the  Kattegat. 

Enemy  planes  are  increasing  their  activity  over  the  Gulf  of  Finland. 
Motor  mine  sweeper  R  "106"  was  attacked  from  the  air  and  destroyed 
in  the  southern  part  of  the  "Seeigel"  minefield.  12  enemy  planes 
bombed  and  strafed  mine  layer  M  "29"  south  of  Vigrund,  causing  a 
number  of  casualties.   13  bombers  unsuccessfully  attacked  the  3rd 
Mine  Sweeper  Flotilla  south' of  Tytersaari.   2  of  the  planes  were 
set  on  fire.  Mine-sweeping,  convoy,  and  patrol  operations  in  the 


-188- 


CONFIDENTIAL 
16  Aug.  1942 

area  of  the  Commander,  Mine  Sweepers,  Baltic  Sea  proceeded  accord- 
ing to  plan. 

The  1st  Air  Force  has  repeatedly  rejected  all  the  urgent  demands  by 
the  Commander,  Mine  Sweepers,  Baltic  Sea  for  fighter  protection.  The 
Commanding  Admiral,  Group  North  has  therefore  instructed  the  Com- 
mander, Mine  Sweepers,  Baltic  Sea  to  withdraw  the  naval  forces  from 
the  most  imperiled  area  pending  the  arrival  of  the  indispensable 
fighter  protection, so  as  to  avoid  losses  to  our  forces  and  prevent 
easy  viotories  by  the  Russian  Air  Force.   The  Commanding  Admiral, 
Group  North  has  requested  the  Naval  Staff  to  use  its  influence  in 
bringing  about  the  allocation  of  adequate  forces  to  the  1st  Air  Force 
in  view  of  the  fact  that  naval  warfare  cannot  be  carried  on  in  coastal 
waters  close  to  the  enemy's  shore  without  air  support. 

The  Naval  Staff  is  taking  the  necessary  steps. 


V.    Submarine  Warfare 

0  t 

1.  Enemy  Situation: 

Both  groups  and  the  Iceland  forces  maintained  lively 
reconnaissance  activity.   From  the  Bay  of  Biscay  alone  we  intercepted 

4  submarine  sighting  reports  and  4  reports  on  air  attacks  against 
submarines  sent  by  planes.   Other  submarine  sighting  reports  were 
intercepted  from  some  370  miles  northwest  of  Porcupine  Bank  and  110 
miles  south  of  Rockall  Bank.  British  vessels  were  located  250  miles 
northwest  of  Cape  Ortegal  as  well  as  about  50  miles  from  that  posi- 
tion and  also  300  miles  northwest  of  Porcupine  Bank. 

In  the  West  Indies  area,  submarine  sighting  reports  were  picked  up 
from  the  Florida  Strait,  the  Windward  Passage,  east  of  Martinique, 
and  from  the  area  about  400  miles  southeast  of  Trinidad. 

2.  Own  Situation: 
Disposition  of  submarines: 

■ 

In  the  Arctic  Ocean,  8  submarines  are  at  their  positions, 
2  are  en  route  to  and  3  are  en  route  from  the  operations  area.  8 
submarines  are  in  the  harbors. 

In  the  Atlantic  Ocean.  36  submarines  are  in  the  operations  area.  4 
submarines  have  departed  from  the  harbors  of  western  France  and  16 
from  Germany.  15  submarines  are  en  route  back  to  their  bases. 

1  submarine  is  in  the  area  of  northern  Scotland  and  Iceland. 

5  submarines  are  in  the  operations  area  of  the  South  Atlantic  group, 
while  8  have  departed  for  that  area. 

In  the  Mediterranean.  4  submarines  are  operating  at  sea,  2  have  de- 
parted from  base  and  1  is  returning  to  base.  '  8  submarines  are  in 
the  harbors  and  bases. 

5  submarine  tankers  are  at  sea. 


-189- 


CONFIDENTIAL 
16  Aug.  1943 

No  successes  have  as  yet  been  achieved  against  the  convoy  assumed 
to  be  in  quadrant  AL. 

Submarine  U  "596"  sank  the  evidently  unescorted  Swedish  steamer 
SUECIA  (3,730  GRT)  in  quadrant  AL  4189. 

Submarine  U  "294"  returning  from  the  operations  area  evaded  a  three- 
fan  in  quadrant  BE  6686,  250  miles  northwest  of  Cape  Ortegal  (see 
Enemy  Situation).   This  confirms  the  assumption  that  the  enemy  is 
also  using  submarines  to  fight  our  submarines  in  the  outer  part  of 
the  Bay  of  Bisoay. 

Nothing  noteworthy  has  been  reported  from  the  American  east  coast. 

Since  the  ship  traffic  in  the  Trinidad  area  has  undergone  changes 
due  to  the  appearance  of  large  numbers  of  our  submarines,  they  have 
been  assigned  new  attack  areas,  directly  off  the  harbors  wherever 
possible.  No  reports  of  successes  in  this  area  were  received. 

Of  the  group  operating  in  the  South  Atlantic,  submarine  U  "752" 
sank  an  8,000  GRT  steamer  in  quadrant  ET  9317  on  13  Aug.  5  (later  6) 
boats  of  the  "Bluecher"  group  are  scheduled  to  attack  a  convoy  which 
was  located  in  quadrant  CG  7357. 

Since  the  Commander,  Submarines,  Italy  does  not  expect  any  further 
enemy  operations  in  the  western  Mediterranean  before  the  end  of 
August,  the  Naval  Staff  agreed  by  telephone  to  his  suggestion  that 
the  submarines  employed  in  that  area  be  transferred  to  the  eastern 
Mediterranean. 

For  further  reports  see  supplement  to  the  submarine  situation  in 
War  Diary,  Part  B,  Vol.  IV. 


VI.   Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

Bad  weather  hampered  reconnaissance  operations.  3  enemy 
planes  were  shot  down  near  Fanoe.  In  the  night  of  16  Aug.  our  planes 
attacked  airfields  in  the  Nottingham  area.   Enemy  planes  made  30  to 
35  incursions  into  the  Reich  area  on  that  night,  penetrating  as  far 
as  Rostock,  Stolp,  Bornholm,  and  Kallundborg.  One  of  the  planes 
flew  as  far  as  Gdynia.  No  bombings  were  observed.  It  is  to  be 
assumed  that  the  planes  have  been  dropping  mines.  For  inoursions 
during  the  day  see  Situation,  North  Sea. 

2.  Mediterranean  Theater: 

Our  planes  carried  out  a  number  of  reoonnaissanoe  mis- 
sions.  For  results  see  Enemy  Situation,  Mediterranean. 

3.  Eastern  Front: 

In  the  Black  Sea,  2  small  vessels  were  sunk  and  2  others 
damaged  off  Temryuk.  3  medium-sized  steamers  were  damaged  in  the 
harbor  and  the  roadstead  of  Novorossisk.  1  steamer  was  damaged  and 


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CONFIDENTIAL 
16  Aug.  1942 

1  coastal  vessel  was  sunk  off  Gelendzhik. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

-  I4        Enemy  Situation,  Mediterranean; 

An  aircraft  carrier  of  the  ILLUSTRIOUS  class,  which  docked 
in  Gibralter  on  15  Aug.,  left  dock  at  noon.   In  the  night  of  15  Aug. 
1  battleship  of  the  RODNEY  class,  the  FURIOUS,  1  ship  of  the  IL- 
LUSTRIOUS class,  and  1  cruiser  departed  from  Gibraltar,  presumably 
in  westerly  direction.   On  16  Aug.  at  noon  2  more  cruisers  and  1 
destroyer  left  Gibraltar,  presumably  also  for  the  west.   At  1400 
the  NELSON,  1  aircraft  carrier  of  the  ILLUSTRIOUS  class,  1  cruiser 
of  the  FIJI  class,  and  another  cruiser,  as  well  as  the  ARGUS  (in 
dock) ,  were  observed  in  ths  harbor. 

According  to  an  intelligence  report  from  an  unconfirmed  source,  the 
vessels  in  Gibraltar  showed  the  following  damage: 

The  starboard  anti-aircraft  gun  mount  of  the  ILLUSTRIOUS  was  hit  by 
a  bomb.   2  guns  are  missing.   The  bomb  penetrated  2  decks  and  ex- 
ploded 20  feet  above  the  waterline,  tearing  a  hole  of  approximately 
7  meters  in  diameter  in  the  ship's  side.   Another  hit,  presumably 
from  a  gun,  can  be  seen  on  the  port  side  at  the  level  of  the  bridge. 
The  hole  in  the  ship's  side  is  about  5  meters  large. 

The  RODNEY  was  hit  by  a  torpedo  on  the  port  side.   Details  are  lack- 
ing.  (The  torpedo  might  have  been  fired  by  an  Italian  submarine.) 

The  bow  of  a  DIDO-class  .cruiser  was  hit  by  a  torpedo  from  a  sub- 
marine. 

The  bow  of  a  FIJI-class  cruiser  was  torn  off. 

The  bows  of  2  destroyers  are  badly  damaged,  apparently  as  a  result 
of  a  collision. 

Air  reconnaissance  observed  lively  submarine  activity  off  the  western 
coast  of  Greece. 

Only  few  convoys  were  observed  off  the  Palestinian  coast. 

2.  Own  Situation: 

No  incidents  were  reported. 

3.  Transport  of  Supplies  to  North  Africa: 

On  15  Aug.  at  1830  an  enemy  submarine  torpedoed  the  Italian 
motor  ship  LERICI  f6,C00  GRT)  off  the  western  coast  of  Crete.   The 
attempt  to  bring  the  ship  into  Navarino  failed.   An  Italian  destroyer 
sank  the  steamer  on  16  Aug.  at  noon. 

An  enemy  submarine  and  planes  attacked  the  convoy  of  the  steamer 
MENES  en  route  from  Benghazi  to  Suda.   Enemy  planes  attacked  the 


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CONFIDENTIAL 
16  Aug.  1942 

SPORTIVO  and  BIANCHI  convoy  en  route  from  Suda  to  Tobruk.   No  re- 
ports about  the  arrival  of  the  £hips  have  been  received  so  far. 
Otherwise  the  transport  of  supplies  proceeded  according  to  plan. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

Convoy  operations  proceeded  as  planned.   The  destroyer 
ZG  "3"  will  be  relieved  en  route  by  an  Italian  destroyer  and  will 
then  proceed  to  Suda. 

Black  Sea: 

Enemy  Situation: 

Air  reconnaissance  reports  that  there  are  no  longer  any 
seaworthy  vessels  to  be  seen  in  Novorossisk.   The  hull  of  1  warship, 
4  tankers,  4  steamers,  and  2  floating  cranes  were  observed  in  Tuapse. 
On  15  A°ug.  the  KRASNY  KRIM,  1  flotilla  leader,  and  2  destroyers  were 
located  at  sea.  Little  traffic  was  observed  off  the  eastern  Black 
Sea  coast. 

Own  Situation: 

Convoy  operations  proceeded  according  to  plan. 

5.  Special  Items: 

(l)   Group  South  has  transmitted  the  following  report 
about  the  plans  of  the  Admiral,  Black  Sea  to  the  Naval  Liaison 
Officer  with  the  Array  High  Command,  with  copy  to  the  Naval  Staff: 

After  the  occupation  of  Novorossisk  the  supply  transport  route  is 
to  be  swept  free  of  mines.   The  sunolies  from  the  Rumanian  and  Rus- 
sian areas  will  be  brought  by  steamer  to  Balaklava  where  they  will 
be  transferred  to  landing  barges.   From  Balaklava  the  cargo  will  be 
transported  by  landing  barges  via  the  coastal  route  sweot  free  of 
mines  to  Novorossisk  escorted  by  the  3rd  Motor  Mine  Sweeper  Flotilla, 
with  long-range  reconnaissance  and  close  escort  by  the  4th  Air  Force. 
The  transport  of  supplies  from  Kerch  to  Novorossisk  will  begin 
simultaneously. 

The  Group  remarks  that  Sevastopol  and  Feodosiya  cannot  be  used  as 
ports  of  transshipment  for  the  time  being  since  no  raine-sweeoing  de- 
vices are  as  yet  available  for  the  removal  of  influence  mines.  In 
addition  to  the  landing  barges  scheduled  to  oarticipate  in  operation 
"Bluecher",  8  landing  barges  will  be  ready  for  transport  operations 
in  the  Crimean  harbors  on  18  Aug.   This  date  deoends  on  the  final 
outcome  of  the  investigation  concerning  Russian  acoustic  and  magnetic 
mines.   (See  Telegram  1340.) 

(2)   Group  South  announces  that  the  Naval  Shore  Commander, 
Ukraine  has  been  asked  to  report  on  the  rumors  that  the  Navy  is  not 
doing  its  part  in  transports  to  Azov.  Apart  from  this,  Group  South 
states  that  it  is  the  duty  of  the  responsible  Naval  Shore  Commander 
to  see  to  it  that  supply  transport  routes  are  free  of  mines.   The 
date  set  by  Army  Group  A  as  the  latest  on  which  the  transports  should 
begin,  i.e.,  4  Aug.,  was  met.   Even  if  it  is  true  that  the  Siebel 
ferry  detachment  started  the  transport  operation  on  its  own  initiative 


-192- 


CONFIDENTIAL 
16  Aug.  1942 

against  the  orders  of  the  Naval  Shore  Commander,  the  fact  that  no 
losses  occurred  during  this  operation  can  by  no  means  be  attributed 
to  the  special  courage  of  the  participants  but  rather  to  their  good 
luck  which  has  nothing  to  do  with  actual  responsibility  in  the 
military  sense.   (See  Telegram  1340.) 

This  is  exactly  the  opinion  of  the  Naval  Staff.  - 

(3)   Group  South  does  not  recommend  the  use  of  submarine 
DELFINUL  for  transport  operations  because  her  loading  oapacity  is 
not  great  enough  to  be  worth  while;  also,  being  a  Rumanian  vessel,' 
the  DELFINUL  would  have  to  be  handled  with  particular  care,  with 
the  result  that  her  use  would  hardly  be  more  time-saving  than  that 
of  a  surface  ship  (see  Telegram  1340). 

The  Naval  Staff  agrees  with  this  viewpoint. 


VIII.  Situation  East  Asia 

No  noteworthy  reports  have  been  received. 


TY.        Army    3i  tiia-H  rm 

1.   Russian  Front; 

Army  Group  A; 

Neftegorsk  has  been  captured.  Advance  detachments  are 
raarohing  toward  Alekseyevskoye.  Spearheads  of  the  XLIX  Mountain 
Corps  are  engaged  in  a  fight  with  strong  enemy  forces  10  km  north- 
west of  the  Klukhor  Pass.  Another  unit  of  the  Mountain  Corps  is 
advancing  toward  the  Chiper  Asau  Pa6s  on  the  southwest  edge  of  the 
Elbrus  Mountain  without  having  made  contact  with  the  enemy.  The 
3rd  Panzer  Division  of  the  XL  Panzer  Corps  is  near  Baksan,  while 
the  33rd  Panzer  Division  of  this  corps  took  Soldatskaya. 

Army  Group  B; 

The  attack  on  the  right  wing  of  the  4th  Panzer  Army  was 
repulsed.  The  6th  Army  mopped  up  the  enemy  forces  in  the  Don  River 
bend  on  the  western  and  northern  banks  of  the  river.   Enemy  attacks 
south  of  the  point  where  the  Bityug  River  flows  into  the  Don,  as 
well  as  south  of  Voronezh,  and  at  the  point  of  penetration  southeast 
and  south  of  Yelets  were  repulsed.   The  enemy  continued  to  bring  up 
reinforcements  along  the  entire  front. 

Central  Army  Group: 

Our  troops  continue  their  operation  in  the  Sukhinichi  area 
against  stubborn  enemy  resistance.   Enemy  attacks  southeast  of 
Vyazma  were  repulsed.  By  attacking  our  southern  position  south  of 
Rzhev,  the  enemy  widened  the  breach  in  our  lines.  All  other  enemy 
attacks  were  repulsed.  New  strong  enemy  tank  attacks  were  direoted 
against  our  main  line  of  resistance  which  had  been  withdrawn  east 
of  Rzhev. 


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CONFIDENTIAL 


16   Aug.    1942 


Northern  Army  Group; 

Enemy  attacks  north  of  the  land  bridge  south  of  Lake  Ilraen 
were  repulsed.   The  enemy,  attacking  from  the  south,  penetrated  the 
position  of  the  SS  Death's  Head  unit.  A  counterattack  is  under  way. 
Heavy  enemy  attacks  near  Soltsy  were  repulsed.   Southeast  of  Leningrad 
the  enemy  succeeded  in  penetrating  our  oosition  at  the  railroad  line 
near  Kolpino. 

2.  Finnish  Front; 

No  noteworthy  fighting  was  reported. 

3.  North  Africa; 

Enemy  patrol  operations  and  lively  air  activity  are  re- 
ported from  the  central  and  southern  sectors.   Enemy  artillery  at- 
tacks, at  times  very  strong,  were  directed  against  our  northern' 
sector.   On  the  night  of  14  Aug.  an  enemy  assault  detachment  landed 
on  the  coast  near  El  Daba.  After  inflicting  minor  damage  on  our 
motor  vehicles,  the  detachment  made  an  attempt  to  break  through  to 
the  British  lines  in  the  east. 

************************* 


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CONFIDENTIAL 
17  Aug.  1942 

Items  of  Political  Importance 

The  Moscow  Conference; 

Reuter  has  published  an  official  British  communique  on  the  meet- 
ing between  Churchill  and  Stalin  in  Moscow.   The  conferences 
lasted  from  12  to  15  Aug.   Wavell,  Sir  Alexander  Cadogan,  Alan 
Brooke,  .«Harriman,  as  well  as  Molotov  and  Voroshilov,  were  among 
those  attending  the  conferences.   The  communique  states  that  a 
number  of  decisions'  were  made  concerning  the  war  against  Hitler 
Germany  and  her  allies  in  Europe.  The  two  governments  are  de- 
termined to  carry  on  this  war  of  liberation  with  all  the  forces 
at  their  disposal  and  with  utmost  energy  until  Hitlerism  as  well 
as  any  other  tyranny  of  the  same  kind  are  completely  annihilated. 
Harriman  represented  Roosevelt  at  these  conferences,  which  were 
conducted  fln  a  spirit  of  cordiality  and  complete  sincerity". 
Churchill  and  Harriman  left  Moscow  on  17  Aug. 

Turkey; 

According  to  a  statement  of  a  Turkish  diplomat,  even  a  German 
victory  in  the  Caucasus  or  the  collapse  of  Russia  will  not  in- 
duce Turkey  to  give  up  her  neutrality,  especially  if  the  war  be- 
tween the  Anglo-Americans  and  the  Germans  continues.   Turkey,  too, 
is  a  sea  power  and.  has  to  act  accordingly, 

Italy; 

The  Associated  Press  reports  that  a  Pan-American  conference  of 
"Free  Italians"  in  Montevideo  has  established  a  "government"      t 
under  Count  Sforza. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  In  view  of  the  great  successes  achieved  by  ship  "28",  the 
Chief,  Naval  Staff  lias  ordered  that  the  commander  of  the  ship, 
Comdr.  von  Ruckdeschel  be  promoted  to  captain. 

In  view  of  the  obviously  poor  training  of  U.S.  warships  in  night 
combat,  evidenced  during  the  recent  battle  off  the  Solomon 
Islands,  all  auxiliary  cruisers  should  be  informed  accordingly. 
The  Naval  Staff  will  take  the  necessary  steps. 

II.  The  Naval  Staff  is  of  the  opinion  that  the  enemy  convoy  in 
the  Mediterranean  carried  supplies  for  Malta.   The  large  number 
of  transports  used  in.  this  operation  was  meant  to  anticipate 
losses,   ^he  aircraft  carriers  were  primarily  designed  to  furnish 
fighter  protection  for  the  convoy,  aside  from  the  task  of  trans- 
porting planes  to  Malta  which  probably  was  of  secondary  importance 
Following  the  heavy  losses  suffered  early  in  July,  the  enemy  may 
be  assumed  to  have  expected  a  better  chance  for  fighting  off  our 
air  attacks  since  the  sky  was  clear  and  the  barometer  high.  Be- 
sides, the  prevailing  weather  conditions  are  unfavorable  for 


-195- 


CONFIDENTIAL 
17  Aug.    1942 

submarine  attacks.  The  battleships  had  to  be  sent  along  in  order 
to  protect  the  aircraft  carriers. 

According  to  reports  received  so  far,  5  steamers,  including  1 
tanker,  have  reached  Malta.   The  escort  forces  accompanying  the 
convoy  have  returned  from  Malta  to  Gibraltar. 

This  fact  constitutes  a  striking  demonstration  of  the  inadequacy 
of  the  mine  barrage  in  the  Strait  of  Sicily.   The  Naval  Staff 
will  take  further  steps  to  block  the  passage  completely  by  mines. 

So  far,  the  following  enemy  losses  have  been  established:   the 
EAGLE  and  the  MANCHESTER  sunk,  2  aircraft  carriers  definitely 
damaged,  the  RODNEY,  1  cruiser,  and  2  destroyers  probably  damaged. 

Further  information  is  expected  from  prisoner  statements. 

The  Naval  Staff  does  not  consider  it  likely  that  the  British  would 
try  to  get  a  considerable  amount  of  supplies  to  Egypt  by  way  of 
the  western  Mediterranean.   In  any  case,  the  enemy  has  to  expect 
such  high  losses  in  the  Mediterranean  that  in  comparison  the  longer 
route  around  the  Cape  would  be  more  advantageous. 

The  Naval  Staff  has  sent  this  opinion  to  the  Armed  Forces  High 
Command  Operations  Staff,  with  copy  to  the  German  Naval  Command, 
Italy,  Group  South,  the  Naval  Liaison  Officer  to  the  Air  Force 
Operations  Staff,  and  the  Naval  Liaison  Officer  to  the  Army  Gen- 
eral Staff. 

III.  With  regard  to  the  assumption  of  Group  South  that  the  enemy' 
has  laid  magnetic  mines  with  acoustic  firing  devices  off  Yeisk 
and  Akhtari,  the  Naval  Staff  states  that,  in  addition  to  landing 
barges  and  motor  mine  sweepers,  there  are  also  the  vessels  of  the 
Danube  flotilla,  the  steamer  BAIKAL,  and  2  Rumanian  vedette  boats 
which  are  suitable  for  sweeping  mines  in  the  Black  Sea  area.  The 
Naval  Staff  is  trying  to  replace  the  only  mine-detonating  vessel 
which  was  available  and  has  been  lost. 

IV.  The  Chief,  Naval  Staff  Communications  Division  reports  that 
today  the  most  important  information  for  decoding  Anglo-American 
radio  messages  was  handed  over  to  the  Japanese  to  be  taken  along 
by  submarine  I  "30".   As  for  the  Japanese  decoding  service,  the 
Chief,  Naval  Staff  Communications  Division  does  not  think  that  it 
can  keep  pace  with  our  own  achievements.   The  Japanese  designate 
as  valuable  many  of  the  enemy  reports  which  we  transmit  to  them 
every  day.   In  any  case,  it  is  we  who  are  the  givers  in  this  ex- 
change of  information.   If,  as  may  be  assumed,  the  Japanese  are 
unable  to  find  out  by  themselves  what  code  changes  the  enemy  has 
made  during  the  voyage  of  submarine  I  "30",  it  will  be  somewhat 
difficult  for  them  to  utilize  the  material  delivered  to  them  up  to 
this  date.   This  will  give  us  an  opportunity  to  obtain  valuable 
evidence  as  to  the  actual  effectiveness  of  the  Japanese  decoding 
service. 

V.  The  Chief,  Naval  Staff  Quartermaster  Division  reports  that 
the  Fuehrer  was  satisfied  with  his  explanation  of  the  Navy's 
position  with  regard  to  the  explosive  cyclonite. 

-196- 


CONFIDENTIAL 


17  Aug.  1942 


VI.   The  Deputy  Chief,  Naval  Staff  Quartermaster  Division  dis- 
cusses the  report  made  by  Vice  Admiral  Krancke  to  the  Chief  of 
Staff,  Naval  Staff  on  13  Aug.  about  the  conference  concerning  the 
Westwall-like  fortification  of  the  west  coast  defenses.   The 
Fuehrer  declared  that,  due  to  the  strategic  situation,  German 
forces  cannot  operate  on  more  than  one  front.   So  far,  first  the 
treaty  with  Russia  and  then  the  Y/estwall  enabled  us  to  concentrate 
our  entire  strength  on •one  front.   The  Fuehrer's  hope  for  a  quick 
Russian  defeat  did  not  materialize,  and  no  one  can  tell  whether 
it  will  this  year;  in  any  event,  the  bulk  of  our  forces  will  un- 
doubtedly have  to  remain  in  the  east.   For  this  reason  it  is 
necessary  to  increase  the  defenses  In  the  v/es.t.   Only  if  the 
coastal  defenses  are  developed  into  a  fortress  protecting  the  west 
from  any  attack,  can  Germany  hold  the  coast  safely  with  compara- 
tively few  divisions  and  defend  it  effectively  against  any  land- 
ing attempts;  such  attempts  might  even  be  entirely  discouraged 
by  these  measures,  and  this  would  be  the  most  desirable  effect. 
The  most  precious  thing  of  all  is  a  German  life.   The  blood 
saved  by  the  erection  of  this  fortress  is  worth  the  billions  to 
be  spent.   In  the  beginning,  it  will  presumably  be  necessary  to 
use  the  entire  operational  reserve  in  order  to  annihilate  air- 
borne landing  troops.   Should  a  landing  be  made  thereafter  on  the 
coast  after  very  heavy  air  attacks,  the  coast  would  have  to  be 
strong  enough  to  hold  out  on  its  own  for  weeks.   This  can  be  done 
only  in  well-fortified  strongholds  like  the  Westwall  fortifications 
Field  fortifications  are  by  no  means  adequate.   They  would  not 
suffice  against  heavy  air  raids  or  tanks.   No  air  forces  can  be 
withdrawn  from  the  east,  and  it  must  be  expected  that  the  enemy 
will  have  air  superiority  in  the  west.   The  submarine  warfare  and 
the  transport  of  supplies  by  sea  must  be  maintained.   This  is  a 
prerequisite  to  victoryl   The  submarine  bases  and  the  most  im-   ' 
portant. harbors  must  be  developed  into  real  fortresses.   Also  those 
harbors  where  the  enemy  might  be  expected  to  unload  his  supplies 
of  heavy  armament,  as  well  as  those  serving  as  bases  for  the  German 
naval  defense  forces,  must  be  developed  In  the  same  manner.   The 
list  submitted  by  the  Naval  Staff  will  serve  as  a  guide.   These 
bases  must  also  be  made  safe  against  attacks  from  the  rear.   The 
Fuehrer  has  in  mind  a  belt  of  pillboxes  round  the  harbor,  with  a 
radius  of  approximately  10  to  20  km,  all  covered  with  a  thick 
layer  of  concrete  and  armor.   For  this  purpose  the  Navy  should 
hand  over  any  unused  armor,  including  the  barbettes  for  the  40  cm.  ' 
turrets  which  will  never  be  installed  on  ships  anyway.   After  the 
war  there  will  be  enough  productive  capacity  available  to  replace 
the  armor  in  time.   All  command  posts  must  likewise  be  protected. 
Not  the  fortification  but  the  soldier  must  do  the  fighting.   He 
must  therefore  be  protected  against  the  heaviest  type  of  air 
attacks,  and  must  also  be  able  to  sleep  well.   For  this  reason  all 
soldiers  must  be  quartered  inside  the  forts.   The  batteries  must 
not  be  destroyed  prior  to  the  landing,  when  they  will  be  needed, 
and  should  therefore  be  so  well  protected  as  to  make  them  safe 
even  against  the  heaviest  bombs.   So  far,  this  has  been  done  only 
in  isolated  cases,  and  there  must  be  a  change.   The  concrete  top 
must  be  at  least  2  to  3.5  meters  thick.   In  this  connection,  the 
Fuehrer  pointed  to  the  Insufficient  concrete  covering  of  the  naval 
installations,  whereupon  Vice  Admiral  Krancke  pointed  out  that  the 
Army  installations  on  the  coast  are  not  stronger  than  those  of  the 
Navy.   Two  thirds  of  the  pictures  of  "foolish"  installations  shown 
by  General  Jacob  were  photos  of  Army  installations  but  were  pre- 
sented to  the  Fuehrer  as  belonging  to  the  Navy.  The  case  has  been 
clarified. 

-197- 


CONFIDENTIAL 
17  Aug.  1942 

It  will  now  be  necessary  to  examine  our  installations  from  this 
point  of  view  and,  first  of  all,  to  improve  those  still  under  con- 
struction.  Mounts  for  range  finders  should  be  placed  under  armor- 
plated  hoods.   Embrasures  should  be  very  small.   All  entrances 
must  be  well  protected.   The  installations  should  be  made  safe 
against  being  smoked  out,  even  by  means  of  flame  throwers.   They 
should  be  protected  against  tanks  by  anti-tank  gun  emplacements 
to  which  anti-tank  troops  could  be  brought  up.   ^he  medium  batteries 
are  to  be  supplemented  by  light  batteries  which  can  be  used  as 
anti-aircraft  guns  in  case  of  air  attacks  and  as  anti-tank  guns 
in  case  of  land  attacks   (two-way  training).  The  purpose  of  all 
these  measures  is  to  achieve  the  highest  defensive  strength  with 
as  little  personnel  as  possible.   Light  batteries  of  all  calibers 
should  be  used  to  protect  the  shore  against  enemy  landings  in  the 
vicinity  of  the  heavy  batteries.  Flame  throwers  used  from  in- 
side the  fort  are  very  effective  as  a  defense  against  assault  de- 
tachments . 

In  all  (in  France  and  Holland)  15,000  fortifications  are  to  be 
built,  with  each  of  the  10  most  important  naval  bases  to  be  pro- 
tected by  400  fortifications.  Tbe  position  of  the  heavy  artillery 
concentrated  near  Cape  Gris  Nez  must  also  be  protected  by1  a  belt 
of  fortifications.  General   Jacob  ig  to  work  out  the  details  in 
cooperation  with  the  Navy. 

The  system  of  pillboxes  inside  the  belt  should  be  as  wide  as 
possible.  Assault  guns  and  tanks  for  counterattacks  are  like- 
wise to  be  emplaced  in  concrete  pillboxes. 

Preparations  for  the  construction  of  these  pillboxes  will  take 
some  time.   In  the  meantime  Speer  will  push  the  completion  of  the 
submarine  pens.   Only  in  Bordeaux  will  the  completion  be  some- 
what delayed  (4  weeks);  in  other  places  the  work  will  be  finished 
a  little  earlier. 

VII.  On  orders  from  the  Naval  Staff  Quartermaster' Division,  the  Na- 
val Shore  Command  Willi  has  been  renamed  Naval  Shore  Command, 
Caucasus . 

VIII.  Report  by  the  Chief.  Foreign  Affairs  Section,  Naval  Staff 
Operations  Division: 

1.   The  Germans  from  Guatemala  are  not  on  board  the  Portu- 
guese steamer  which  left  Baltimore,  because  there  was  a  traffic 
delay  in  Mexico,  for  which  allegedly  nobody  is  to  blame,  and  they 
were  unable  to  reach  the  ship  in  time. 

2.   The  Armed  Forces  High  Command  has  approved  the  voyage  of 
the  motor  ship  CEFHEE  from  Dakar  to  Saigon,  as  requested  by  the 
French.   For  details  concerning  precautionary  measures  see  War 
Diary,  Part  C,  Vol.  VIII. 

In  a  Very  Restricted  Circle; 

IX.  1.    The  Chief,  Operations  Branch,  Naval  Staff  Operations 
Division  reports  on  the  disposition  of  submarines  in  the  Mediter- 
ranean. The  report  about  the  departure  of  the  FURIOUS  in  easterly 
direction  proves  that  it  is  necessary  to  keep  the  submarines  in 

-198- 


CONFIDENTIAL 


17  Aug.  1942 


the  western  Mediterranean.  A  new  order,  cancelling  the  previous 
authorization  by  telephone,  is  therefore  issued  to  the  Commander, 
Submarines,  Italy,  with  copy  to  the  German  Naval  Command,  Italy, 
directing  him  to  send  no  more  than  2  submarines  to  the  western 
Mediterranean,  after  4  have  been  sent  to  the  eastern  Mediterranean, 

The  Chief,  Naval  Staff  agrees. 

2.   a.    Our  recent  submarine  losses  show  an  extraordinary 
increase.   10  boats  were  lost  in  July  and  7  so  far  in  August.  The 
Naval  Staff  attributes  the  loss  of  4  of  these  17  submarines  to  air 
attacks  on  the  Bay  of  Biscay  where  enemy  planes  also  badly  damaged 
2  German  and  1  Italian  submarines. 

b.  The  supply  ship  UCKERMARK,  which  departed  from  La 
Rochelle  on  9  Aug.  to  supply  the  auxiliary  cruisers  vand  serve  as 
a  blockade-runner,  also  had  to  interrupt  her  voyage  and  re-enter 
port  after  having  been  repeatedly  attacked  by  a  British  plane  be- 
tween the  French  coast  and  8°  W.   The  extensive  blockade-runner 
schedule  starts  with  9'  ships  which  are  to  depart  from  western 
France  in  August  and  September.   In  addition,  2  ships  have  already 
departed  from  Japan  and  are  expected  to  arrive  in  western  France 
in  October. 

c.  The  British  Air  Force  can  harass  or  even  stop  com- 
pletely the  blockade -runner  service,  the  importance  of  which  for 
the  German  war  economy,  especially  as  far  as  food  supplies  are 
concerned,  is  well  known. 

The  Naval  Staff  submits  these  remarks  to  the  Air  Force,  Operations 
Staff,  along  with  the  figures  on  submarine  losses  and  damages,  as 
a  further  argument  to  support  its  request  for  more  planes  for  the 
Bay  of  Biscay.  (Copies  to  the  Armed  Forces  High  Command  Operations 
Staff  and  the  Permanent  Representative  of  the  Commander  in  Chief, 
Navy  at  the  Fuehrer  Headquarters.)   At  the  same  time,  the  Naval 
Staff  requests  the  Air  Force  Operations  Staff  to  make  known  its 
intentions  in  this  respect. 

Recent  submarine  losses: 


June  1942: 
July  1942: 


submarines  U  "652"  and  U  "568"  in  the  Mediterranean 

submarines  U  "502"  and  U  "-751"  sunk  by  planes  in 
the  Bay  of  Biscay;  furthermore,  U  "158",  U  "157", 
U  "701",  U  "90",  U  "136",  U  "215",  U  "153",  and 
U  "576" 


August  1942: 


3. 

the  new 

German 
in  time 
manning 
area, 
matter, 
ingly . 


submarines  U  "213"  and  U  "578"  sunk  by  planes  in 
the  Bay  of  Biscay,  U  "588",  U  "210"  and  U  "379" 
lost  during  the  operations  against  convoys  in 
the  North  Atlantic,  and  U  "166"  lost  off  the 
Mississippi  estuary 

According  to  a  report  from  the  German  Naval  Command,  Italy 
Rommel  offensive  is  scheduled  to  begin  on  28  Aug.   The 
Naval  Command,  Italy  requests  that  steps  be  taken  to  dispatch 
the  4  requisition  detachments  as  well  as  the  personnel  for 
the  patrol  vessels  which  will  presumably  be  needed  in  that 
The  Naval  Staff  Quartermaster  Division  will  take  up  the 
The  German  Naval  Command,  Italy  is  being  notified  accord- 


-199- 


CONFIDENTIAL 
17  Aug.  1942 

4.    The  Naval  Liaison  Officer  to  the  Army  High  Command  re- 
ports on  plans  for  execution  oi  operation  "Bluecher  II".   The 
operation  will  presumably  be  carried  out  on  15  or  16  Aug.,  de-  ' 
pending  on  the  enemy  situation.   The  crossing  is  to  be  arranged 
primarily  as  a  transport  operation.   For  reoort  and  map  see 
1/Skl  1596/42  Gkdos.  Chefs,  in  File  "Bluecher". 

X.    In  reply  to  an  inquiry  by  the  Ch^ef,  Naval  Staff,  the  Chief 
of  Staff,  Naval  Staff  tentatively  expresses  his  opinion  about  the 
employment  of  the  naval  forces  from  the  Norwegian  theater  as  fol- 
lows:  It  is  not  to  be  expected  that  the  enemy  forces  will  land 
in  northern  Norway  during  the  winter.   Consequently,  there  will 
be  no  vital  need  for  keeping  the  ships  in  that  area.   If  kept 
there,  their  presence  will  have  no  other  effect  titan  that  of  a 
"fleet  in  being".   If  this,  too,  is  dispensed  with  then  it  will 
be  possible  to  withdraw  the  large  ships,  with  the  'exception  of  the 
SCHEER,  to  Germany.   Such  action  is  desirable  for  its  psychological 
effect  on  the  crews,  etc.,  but  especially  because  it  would  release 
the  destroyers  for  operations  in  the  west  area.   In  addition  to 
entering  shipyards,  the  ships  could  be  used  for  training  purposes 
in  the  eastern  Baltic  Sea.   The  SCHEER  might  be  left  in  the  north 
area  from  where  she  could  depart  for  an  operation  in  the  Atlantic 
whenever  necessary. 

The  Chief,  Naval  Staff  agrees  in  principle  with  these  conclusions. 
The  Naval  Staff  is  investigating  all  the  aspects  of  the  problem. 


Special  Items: 

I.  For  the  opinion  and  the  directive  of  the  Naval  Staff  con- 
cerning the  shipyard  period  of  the  SCHEER  and  the  effect  on  the 
date  of  completion  of  the  cruiser  EMDEN  see  l/skl  I  op  20153/42 
Gkdos.   Copy  no.  4  is  in  V/ar  Diary,  Part  C,  Vol.  I. 

In  accordance  with  this  instruction,  Group  North  and  the  Fleet 
are  directed  to  prepare  in  advance  the  transfer  of  the  SCHEER  to 
Germany  for  shipyard  repairs  after  she  has  completed  operation 
"V/underland" .   The  Naval  Staff  Quartermaster  Division  is  being 
notified  to  this  effect. 

II.  In  view  of  the  fact  that  from  now  on  shipyard  vrorkers  are 
to  be  made  available  to  the  Navy,  the  Commander  in  Chief,  Navy 
ordered  the  Naval  Construction  Division  on  11  Aug.  ..to  keep  him 
informed  about  the  projects  that  can  be  completed  by  the  allocated 
number  of  workers.   In  this  connection,  the  Naval  Staff  Opera- 
tions Division  calls  the  attention  of  the  Naval  Staff  Quartermaster 
Division  to  the  fact  that,  aside  from  the  effect  of  the  manpower 
problem  on  the  execution  of  the  plans,  it  is  also  necessary  to 
take  into  account  the  curtailment  of  the  Navy's  shipyard  capacity 
resulting  from  the  concessions  which  the  Naval  Construction  Divi- 
sion made  to  the  director  of  the  Chief  Committee  for  Naval  Con- 
struction and  to  the  Reich  Commissioner  of  Maritime  Shipping  with 
aegard  to  the  shipyards  in  tho  Netherlands  and  in  Nikolayev.   For 
cooy  of  the  minutes  of  the  conferences  held  on  6  and  7  Aug.  see 
1/Skl  27497/42  geh.  in  War  Diary,  Part  B,  Vol.  V. 

The  Naval  Staff  Operations  Division  requests  the  Naval  Staff 
Quartermaster  Division  to  keep  it  informed  about  the  matter. 

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CONFIDENTIAL 
17  Aug.  1942 

The  Naval  Staff  Operations  Division  views  with 
considerable  concern  the  fact  that  the  Navy  is  being 
restricted  more  and  more  in  many  directions. 

III.  The  Army  General  Staff  has  transmitted  the  report  of  the 
Military  Attache  in  Stockholm  of  14  Aug.  stating  Sweden's  views 
about  the  German  operations.   For  copy  see  l/Skl  28146/42  geh. 
in  War  Diary,  Part  B,  Vol.  V. 


Situation  17  Aug.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

South  Atlantic : 

Radio  intelligence  reports  that  on  9  Aug.  escort  vessels 
en  route  with  the  U.S.  convoy  AS  6  probably  were  ordered  to  pro- 
ceed to  St.  Helena  Island  and  to  remain  there  ready  to  be  called 
out  against  a  raider. 

Freetown  issued  a  warning  about  the  presence  of  a  submarine  some 
680  miles  west  of  the  Congo  estuary.   No  German  submarine  is  in 
that  area. 

According  to  a  report  from  Punta  Arenas,  a  loaded  U.S.  tanker  com- 
ing from  the  Pacific  entered  the  Atlantic  Ocean.   This  report  is 
another  indication  of  the  evidently  increasing  use  of  the  Magellan 
Strait  -for  traffic  between  Chile  and  Australia. 

2.    Own  Situation: 

As  for  ship  movements  in  the  South  Atlantic,  the  few 
available  course  instructions  issued  by  the  enemy  in  August  pre- 
sent the  same  picture  as  the  results  of  the  reconnaissance  voyage 
of  ship  "23",  that  is: 

a.  In  the  eastern  part  of  the  South  Atlantic  the  ships  move 
at  a  distance  of  600  miles  from  the  African  coast. 

b.  Ships  en  route  from  the  Cape  to  Brazil  and  the  West  Indies 
proceed  on  courses  west  and  south  of  the  line  connecting  33°  S, 10°  E 
with  17°  30'  S,  22°  30«  W. 

c.  Ships  moving  between  Montevideo  and  Freetown  pass  west  of 
70  S,  25°  W. 

The  Naval  Staff  assumes  nevertheless  that  some  unescorted  ships,  as 
for  example,  the  ARABISTAN;  still  make  reconnaissance  runs  through 
the  central  part  of  the  South  Atlantic,  while  convoys  continue  to 
sail  on  the  direct  course  between  Freetown  and  the  Cape.   Those  war- 
ship movements  which  have  so  far  been  discovered  were  primarily 
connected  with  escort  operations  and  reconnaissance  along  the  con- 
voy routes.   Lack  of  information  makes  an  estimate  of  ship  move- 
ments between  the  Cape  and  La  Plata  impossible  at  the  present  moment, 

All  vessels  in  foreign  waters  were  informed  about  the  foregoing 
opinion  as  requested  by  ship  "28"  via  Radiogram  2239. 

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CONFIDENTIAL 
17  Aug.  1942 

Further  information  about  the  enemy  situation  was  sent  out  via 
Radiograms  1817,  1951,  2101,  and  2300. 

The  Naval  Attache  in  Madrid  has  reported  the  positions  of  ships 
in  the  blockade  area  and  in  the  area  bounded  by  30°  N,  30°  W.  (See 
Telegram  1G30. ) 


II.   Situation  V/est  Area 

1.  Enemy  Situation; 

Air  reconnaissance  reports  that  in  the  morning  8  patrol 
vessels  and  8  destroyers  were  in  Dover.   In  the  afternoon  3  light 
cruisers  of  the  C  class  and  1  destroyer  were  sighted  on  a  20° 
course  60  miles  south  of  the  Scilly  Islands.   Likewise  in  the 
afternoon  3  steamers,  1  destroyer,  and  several  patrol  vessels  were 
proceeding  on  zigzag   courses  30  miles  east  of  Lizard  Head. 

Photographic  reconnaissance  showed  2  destroyers,  2  patrol  vessels, 
5  passenger  ships,  10  steamers,  some  200  barges,  and  8  large  tugs 
in  Southampton.   About  70  barges  were  in  Portsmouth  at  the  same 
time. 

2.  Own  Situation; 

Atlantic  Coast; 

Nothing  to  report. 

Channel  Coast; 

At  0018  the  burning  eneny  ship  fired  upon  by  the  batteries 
"Grosser  Kurfuerst"  and  M2  was  sunk  in  quadrant  AN  79. 

Shortly  before  completing  their  mine  mission  in  the  Strait  of  Dover 
the  10th  and  12th  Motor  Mine  Sweeper  Flotillas  had  'an  engagement 
with  British  PT  boats,  which,  however,  did  not  prevent  them  from 
carrying  out  the  operation  according  to  plan.   Prior  to  that,  the 
flotillas  were  under  fire  from  the  long-range  battery  from  2155  to 
2210.  Numerous  hits  and  blazing  fire  were  observed  on  an  enemy 
motor  gunboat.   At  2313  a  detonation  was  heard  at  the  southern  end 
of  the  recently  laid  minefield.   3  more  detonations  v.-ere  heard  later. 
It  may  therefore  be  assumed  that  an  enemy  vessel  struck  a  mine.  Of 
our  vessels,  the  motor  mine  sweeper  R  "184"  is  missing.  According 
to  radio  intelligence,  the  vessel  was  sunk  and  some  of  the  crew  were 
taken  prisoner.   (See  Enemy  Situation  16  Aug.)   3  vessels  of  the  10th 
and  2  vessels  of  the  12th  Motor  Mine  Sweeper  Flotillas  were  hit. 
Casualties  are  light.   For  details  see  Telegrams  1020,  1715,  and 
2355.   Motor  mine  sweeper  R  "184"  was  lost  track  of  mainly  because  of 
the  failure  of  the  microwave  equipment.   It  is  very  probable  that 
the  enemy  has  discovered  the  new  minefield. 

The  5th  PT  Boat  Flotilla  has  carried  out  the  mine  operation  in 
quadrants  BF  2329  and.BF  2383  according  to  plan. 


-202- 


CONFIDENTIAL 
17  Aug.  1942 

III.  North .Sea,  Norway,  Arctic  Ocean 

1..   North  Sea : 

Enemy  Situation: 

No  noteworthy  reports  have  been  received. 

Own  Situation; 

No  incidents  were  reported  except  for  the  fact  that  2 
ground  mines  were  swept  off  Borkum  and  ScLierrnonnikoog. 

2.    Norway,  Arctic  Ocean: 

Enemy  Situation: 

Radio  intelligence  reports  that  on  the  afternoon  of  16 
Aug.  1  vessel  was  at.  sea  in  the  Archangel  area  and  on  the  after- 
noon of  17  Aug.  2  British  vessels  were  located  in  the  same  area. 
4  Russian  submarines  are  assumed  to  have  been  operating  in  the 
area  between  Varanger  Fjord  and  Tromsoe. 

Air  reconnaissance  in  the  Arctic  Ocean  failed  to  yield  any  results 
of  tactical  importance. 

Own  Situation: 

Mine-sweeping  and  convoy  operations  in  the  area  of  the 
Commanding  Admiral,  Norway  proceeded  without  incidents. 

In  the  Pechora  Bay  submarine  U  "200"  sank  2  tugs  and  2  lighters, 
one  of  them  with  about  300  soldiers  on  board. 

Operation  "W  under  land"  is  proceeding  according  to  plan.  Submarine 
U  "601"  is  to  meet  the  SCHEER  at  78°  N,  72°  E  after  0000  on  19  Aug. 
The  submarine  is  to  radio  a  different  rendezvous  point  if  ice  con- 
ditions make  a  change  necessary. 

The  Naval  Staff  hopes  that  it  will  not  be  necessary 
to  send  a  radio  message  because  it  miaht  jeopardize 
the  whole  operation.   This  possible  development 
should  have  been  covered  in  th-e  original  orders. 

The  BV  flying  boat  towed  by  submarine  U  "255"  capsized  and  sank. 
The  crew  was  rescued. 

With  regard  to  the  alleged  location  of  convoy  PQ,  18,  the  brief  re- 
port of  submarine  U  "405"  states  that  on  6  Aug.  at  0035,  7  to  9 
steamers  were  sighted  from  a  distance  of  500  to  600  meters,  in 
quadrant  AA  8946  close  to  the  ice  boundary.   The  submarine  was 
forced  to  submerge  because  of  an  approaching  escort  vessel.  Sounds 
were  heard  by  hydrophone,  but  after  surfacing  an  hour  later  she 
failed  to  sight  anything  in  the  thick  fog  despite  a  systematic 
search.  (See  Telegram  1840.)  Further  information  is  required  and 
will  be  obtained  by  Group  North. 


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CONFIDENTIAL 
17  Aug.  1942 

IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation; 

On  2  and  5  Aug.  air  reconnaissance  spotted  a  total  of  32 
submarines  in  Kronstadt  and  Leningrad,  as  compared  with  52  observed 
on  24  Apr.   The  20  missing  submarines  are  either  at  sea  or  have 
been  sunk. 

2.  Own  Situation: 

In  the  night  of  16  Aug.  about  15  enemy  vessels  were 
located  in  the  Baltic  Sea.   It  is  assumed  that  mines  were  dropped 
in  the  Baltic  Sea  entrances,  between  Sassnitz  and  Trelleborg,  in 
the  area  around  Ruegen,  as  well  as  in  the  Pomnersche  Bay  and  the 
Gulf  of  Danzig.   Night  fighters  shot  down  2  planes. 

At  0646  the  steamer  WURI  of  the  Oslo-Aalborg  convoy  carrying  about 
1,000  men  on  leave  sank  v/ithin  30  minutes  after  hitting  a  mine 
southeast  of  Halsbarre.   Since  the  last  enemy  incursions  over  this 
area  the  route  was  searched  for  ground  mines  5  times,  the  last 
time  on  17  Aug.  just  before  the  convoy  passed  through  it.   The 
point  where  the  detonation  occurred  lies  450  meters  v/est  of  the 
route.   Casualties  are  apparently  light. 

On  15  Aug.  3  enemy  bombers  and  7  fighters  attacked  a  coastal 
patrol  boat  in  Ust'Luga  in  the  Gulf  of  Finland. 

Unescorted  Russian  vessels  were  sighted  southeast  of  Tytersaari. 
The  vessels  withdrew  when  fired  on.   Mine- sweeping  and  convoy 
operations  in"  the  area  of  the  Commander,  Mine  Sweepers,  Baltic 
Sea  proceeded  according  to  plan.   A  Finnish  source  reports  that 
11  enemy  planes  were  shot  down  on  16  Aug.   In  the  last  4  days 
Finnish  fighters  alone  destroyed  25  enemy  planes. 

On  the  basis  of  the  Naval  Staff's  communication  about  the  situa- 
tion in  the  Gulf  of  Finland  with  regard  to  air  operations  (see 
War  Diary  16  Aug.),  the  Commander  in  Chief,  Air  has  directed  that, 
beginning  18  Aug.,  the  1st  Air  Force,  acting  in  direct  accord 
with  Group  North,  shall  employ  the  1st  Squadron  of  the  54th 
Fighter  Wing  stationed  in  Finland  for  the  protection  of  naval  op- 
erations in  the  Gulf  of  Finland.  (See  Telegram  2300.) 

In  the  night  of  14  Aug.  an  Italian  subchasej?  sank  a  Russian  gun- 
boat in  Lake  Ladoga  north  of  Morya  Bay. 


V.    Merchant  Shipping 

The  unceasing  efforts  of  the  Naval  Staff  to  induce  the  Swedes 
to  install  degaussing  gear  on  the  ore  steamers  sailing  to  Rotter- 
dam have  so  far  produced  only  little  or  no  effect.   Only  6  vessels 
of  the  Graengesberg  Company  have  been  equipped  with  degaussing 
gear  so  far.   According  to  a  communication  from  the  Foreign  Office, 
the  Swedish  Foreign  Ministry  has  now  made  known  that  preparations 


-204- 


CONFIDENTIAL 
17  Aug.  1942 

have  been  under  way  for  some  time  for  demagnetizing  ships.  Whether 
all  Swedish  ships  will  be  equipped  with  degaussing  gear  will  de- 
pend on  the  outcome  of  the  negotiations  between  Swedish  experts 
and  Danish  and  German  authorities  in  Copenhagen. 


VI.   Submarine  Warfare 

1.  Enemy  Situation: 

Air  reconnaissance  was  particularly  active  over  the  Bay 
of  Biscay.   An  inbound  submarine  v/as  reported  195  miles  southwest 
of  Brest.   A  number  of  submarine  sighting  reports  were  intercepted 
from  off  the  U.S.  east  coast  and  in  the  West  Indies  area. 

2.  Own  Situation: 

For  operations  of  the  submarines  stationed  in  Norway  see 
Situation  Arctic  Ocean. 

§ 

In  the  North  Atlantic,  the  Commanding  Admiral,  Submarines  is  at- 
tempting by  means  of  dummy  radio  signals  from  2  submarines  to  make 
the  enemy  convoy  steer  a  course  which  would  bring  it  directly 
within  the  reach  of  group  "Loss".   This  attempt  presupposes  that 
the  enemy  makes  use  of  our  submarine  radio  messages  in  directing 
his  convoys.   The  results  of  this  experiment  remain  to  be  seen. 
No  successes  were  reported  from  the  North  Atlantic  or  from  the 
area  off  the  American  east  coast. 

•In  the  West  Indies,  submarine  U  "658"  intercepted  a  convoy  con- 
sisting of  15  ships  south  of  Windward  Passage  and  sank  2  steamers 
of  8,000  and  6,000  GRT  in  a  surface  attack.   In  addition,  1  cor- 
vette, was  probably  hit  by  a  torpedo.   Submarine  U  "553"  sank  2 
steamers  and  1  tanker  totalling  22,000  GRT  from  the  same  convoy. 
On  15  Aug.  submarine  U  "598"  probably  sank  a  tanker  of  the  SAN 
MELIT0  class  west  of  Windward  Passage.   The  Commanding  Admiral, 
Submarines  estimates  her  tonnage  at  8,000  GRT. 

After  a  prolonged  chase  submarine  U  "108"  succeeded  in  sinking 
the  gasoline  tanker  LOUISIANA  (8,587  GRT)  in  the  area  north  of 
Cayenne. 

The  submarines  in  the  South  Atlantic  also  reported  a  number  of 
successes  for  today.   Submarine  U  "566"  sank  the  Norwegian  steamer 
TRITON  (6,710  GRT)  and  a  5,000  GRT  steamer  from  a  northbound  con- 
voy of  14  steamers  and  6  destroyers  in  a  daylight  attack.   The 
operation  against  this  convoy  is  being  continued. 

On  15  and  17  Aug.  submarine  U  "507"  operating  near  the  Brazilian 
coast  with  the  authorization  of  the  Commanding  Admiral,  Submarines, 
sank  2  passenger  steamers  of  6,000  and  5,000  GRT  and  a  3,500  GRT 
steamer,  as  well  as  2  steamers  of  2,200  and  3,000  GRT,  off  Bahia 
and  north  of  there.  The  submarine  had  special  instructions- not 
to  enter  territorial  waters.  Otherwise  the  sinking  of  Brazilian 
merchant  vessels  is  in  accord  with  the  prevailing  regulations. 

There  is  no  doubt  that  these  sinkings  which  un- 
questionably affect  also  Brazilian  vessels  will 
lead  to  a  further  deterioration  in  relations  be- 
tween. Germany  and  Brazil. 

-205- 


CONFIDENTIAL 
17  Aug.  1942 

In  the  western  Mediterranean,  submarines  U  "SSI"  and  U  "73"  are 
again  being  sent  into  action  in  quadrant  CJ  9178  and  9155  re- 
spectively.  In  the  eastern  Mediterranean,  submarine  U  "83"  re- 
ported sinking  an  auxiliary  cruiser  of  about  12,000  GRT  from  a 
fleet  task  force,  ^he   submarine  requires  immediate  help  since 
she  is  unable  to  submerge. 

Together  with  the  above  auxiliary  cruiser,  the  total  tonnage  re- 
ported sunk  today  amounts  to  95,997  GRT,  without  counting  the 
tugs  and  lighters  in  the  Arctic  Ocean.   In  this  connection,  it 
should  be  mentioned  that  as  it  happens  the  majority  of  the  sub- 
marines operating  in  the  Atlantic  Ocean  did  not  contribute  a 
single  sinking. 

For  details  see  supplement  to  the  submarine  situation  in  War 
Diary,  Part  B,  Vol.  IV. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

On  the  night  of  16  Aug.  our  planes  attacked  localities 
on  the  southern  coast  of  England  with  observed  effect.   During 
the  day  fighter  bombers  attacked  Swanage  and  Coworack.   In  the 
night  of  17  Aug.  a  few  of  our  planes  attacked  targets  in  England. 

On  the  same  night  100  enemy  planes  flew  over  the  northwestern 
part  of  the  Reich  but  did  not  concentrate  on  any  specific  point. 
During  the  afternoon  enemy  planes  were  active  over  western  France. 
Bombs  were  dropped  in  the  Rouen  area, 

2 .  Mediterranean  Theater: 

The  present  lack  of  adequate  fighter  protection  makes 
it  very  difficult  to  fight  the  enemy  air  forces  and  to  protect 
the  convoys  with  the  available  forces.   The  Air  Commander, 
Africa  carried  out  reconnaissance  and  fighter  operations,  as  well 
as  fighter-bomber  attacks  against  concentrations  of  motor  vehicles 
on  the  central  sector  of  the  front. 

3.  Eastern  Front; 

Reconnaissance  flights  were  carried  out  over  the  Black 
Sea.   No  other  reports  have  been  received. 


VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.    Enemy  Situation,  Mediterranean: 

The  ARGUS  left  dock  in  Gibraltar  on  16  Aug.  Located  in 
the  harbor  were  1  vessel  of  the  ILLUSTRIOUS  class,  the  ARGUS,  the 
NELSON,  2  vessels  of  the  FIJI  class,  one  of  them  in  dock,  3  de- 
stroyers, 1  auxiliary  cruiser,  at  least  5  submarines,  28  steamers, 
and  9  tankers. 

-206- 


CONFIDENTIAL 
17  Aug.  1942 

According  to  an  intelligence  report  from  Spain  of  16  Aug.,  the 
FURIOUS  is  -said  to  have  taken  aboard  35  Hurricanes  during  the 
night.   It  is  rumored  that  the  aircraft  carrier  departed  toward 
the  east. 

According  to  a  report  by  a  French  pilot,  1  battleship,  1  aircraft 
carrier,  and  5  to  8  unidentified  vessels  were  proceeding  40  miles 
north_ of  Algiers  at  0900  on  17  Aug.   The  German  Naval  Command, 
Italy  reports  that  it  is  not  yet  possible  to  see  how  the  situa- 
tion is  going  to  develop.   For  the  time  being  it  is  assumed  that 
the  carrier  is  transporting  planes  to  Malta.   According  to      • 
another  French  report,  an  escort  force  of  smaller  vessels  joined 
the  aircraft  carrier  at  the  previously  mentioned  position;  in 
addition  to  the  battleship,  7  destroyers  were  reported,  the  entire 
force  heading  east. 

Photographic  reconnaissance  carried  out  over  Valletta  at  noon 
showed  no  change  in  the  total  of  2  destroyers,  3  submarines,  2 
mine  sweepers,  3  corvettes,  4  steamers,  and  1  large  tanker  in  that 
harbor.   Radio  intelligence  observed  lively  submarine  and  air 
activity.   At  noon  messages  about  submarine  operations  were  in- 
tercepted from  the  Malta  and  Alexandria  areas. 

Submarine  sighting  reports  were  issued  off  the  eastern  coast  of 
Sardinia  and  southwest  of  Navarino. 

The  Armistice  Commission,  France  has  transmitted  a  French  report 
about  statements  by  .survivors  from  British  ships,  according  to 
which  their  convoy  consisted  of  12  merchant  vessels,  including 
at  least  1  tanker.  Each  vessel  was  loaded  with  gasoline,  petro- 
leum, edible  oil,  ammunition,  soap,  and  food.   When  asked  by  the 
German  Armistice  Commission,  France  whether  the  number  of  steamers 
in  the  convoy  was  not  rather  21,  the  French  source  repeated  that 
the  prisoners  spoke  of  12  steamers.   It  remains  to  be  seen  how 
correct  this  statement  is.   Further  statements  assert  that  there 
was  no  American  aircraft  carrier  in  the  convoy.   On  the  other 
hand,  a  U.S.  light  vessel  is  said  to  have  participated  in  the 
night  battle  of  Kelibia.   The  British  cruiser  KENYA  also  took  part 
in  that  battle. 

2.   Own  Situation,  Mediterranean; 

An  Italian  submarine  which  has  returned  to  base  reports 
that  on  the  morning  of  14  Aug.  she  fired  5  torpedoes  on  2  cruisers 
35  miles  northeast  of  Algiers.   2  torpedoes  were  definitely  heard 
exploding.   One  of  the  Italian  PT  boats  which  ran  aground  on  the 
Tunisian  coast  on  15  Aug.  is  again  afloat  and  has  entered  Trapani. 

In  view  of  the  present>  enemy  situation  in  the  western  Mediter- 
ranean, our  departing  submarines  have  turned  back  (see  Submarine 
Warfare).   In  anticipation  of  further  events,  a  PT  boat  operation 
is  being  prepared  for  the  night  of  18  Aug.   On  14  Aug.  enemy 
planes  attacked  Tobruk  without  causing  damage  to  harbor  or  naval 
installations.   On  the  night  of  16  Aug.  enemy  planes  again  dropped 
mines  in  the  harbor  of  Marsa  Matruh. 

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CONFIDENTIAL 
17  Aug.  1942 

The  Italian  submarines  were  recalled  from  the  operations  area, 
evidently  even  before  the  enemy  reports  from  the  western  Medit- 
erranean were  made  known. 

For  our  submarine  success  in  the  eastern  Mediterranean  see  Sub- 
marine Warfare. 

The  Naval  Staff  has  ordered  the  German  Naval  Command,  Italy  to. 
transmit  immediately  and  regularly  all  incoming  information  on 
the  courses  steered  by  the  last  Mediterranean  convoy,  particular- 
ly in  the  area  between  Cape  Bon  and  Malta.   The  Naval  Staff  is 
also  very  anxious  to  receive  promptly  all  the  available  prisoner 
statements,  particularly  about  the  aforementioned  courses,  the 
names,  ports  of  departure,  cargoes  and  destination  of  the  steamers, 
any  special  orders,  orders  to  the  escort  forces,  references  to 
the  difficulty  of  the  operation,  and  the  like.   Furthermore,  it 
is  not  clear  whether  the  convoy  was  escorted  by  3  or  by  2  battle- 
ships.  The  German  Naval  Command,  Italy  is  requested  to  transmit 
its  interpretation  of  photographs  to  the  Naval  Staff.  (See  Tele- 
gram 1818.  ) 

It  is  to  be  hoped  that  this  information  will 
yield  a  clear  picture  of  the  actual  assignment 
of  the  convoy. 

3.  Transport  of  Supplies  to  North  Africa: 

On  16  Aug.  an  enemy  submarine  fired  on  and  badly  damaged 
an  auxiliary  sailing  vessel  off  the  eastern  coast  of  Sardinia. 

On  17  Aug.  enemy  torpedo  planes  set  afire  the  escort  vessel  PILO 
50  miles  south  of  Pantelleria.  A  destroyer  was  slightly  damaged 
and  suffered  considerable  casualties. 

In  the  afternoon  an  enemy  submarine  torpedoed  the  motor  ship 

BIXIO  12  miles- southwest  of  Navarino.   Attempts  are  being  made 

to  bring  her  in  to  Navarino.   Other  convoys  proceeded  as  scheduled. 

17,276  tons  were  unloaded  in  Tripoli  in  July,   17,518  tons,  includ- 
ing 7,814-  tons  of  German  cargo,  were  loaded  on  coastal  vessels  in 
that  harbor.   This  shows  that  all  the  incoming  supplies  were  sent 
on  to  the  front. 

In  Tobruk  530  tons  were  unloaded  on  15  Aug.  and  680  tons  on  16  Aug. 
517  tons  were  unloaded  in  Marsa  Matruh  on  16  Aug. 

4,  Area  Naval  Group  South: 
Aegean  Sea; 

No  incidents  were  reported. 

Black  Sea; 

Enemy  Situation: 

In  the  area  between  Sochi,  Sukhum,  and  Poti  air  recon- 
naissance sighted  2  tankers  .under  escort  on  a  southeasterly  course 
and  the  cruiser  KOMINTERN  heading  for  Poti.   Some  50  patrol  ves- 
sels were  located  in  the  canal  north  of  Temryuk.   Lively  ship 

-208- 


CONFIDENTIAL 


17  Aug.  1942 


traffic  was  observed  between  Tuapse  and  Sukhum.   7  steamers,  4 
patrol  vessels,  1  PT  boat,  and  2  destroyers  were  en  route  to  the 
southeast,  while  1  steamer  and  1  tug  were  proceeding  northward. 
According  to  photographic  reconnaissance,  1  tanker,  6  steamers, 
and  several  small  vessels  were  in  Sukhum. 

The  Communications  Intelligence  Officer,  Black  Sea  at  Group  South 
has  compiled  a  supplementary  list  of  war  and  merchant  ships  in  the 
Caspian  Sea  on  the  basis  of  prisoner  statements.   For  copy  see 
l/Skl  28058  geh.  in  War  Diary,  Part  C,  Vol.  XlVa. 

Own  Situation: 

According  to  a  communication  from  the  German  Embassy  in 
Ankara  of  15  Aug.,  the  report  that  15  Russian  vessels  have  en- 
tered a  Turkish  port  has  not  been  confirmed. 

Enemy  submarines  unsuccessfully  attacked  the  tug  FORSCK  south  of 
Tuzla  on  16  Aug.  and  the  ROMULUS  south  of  Odessa  on  17  Aug.   PT 
boats  remained  inactive  because  of  bad  weather. 

On  16  Aug.  an  Air  Force  Siebel  ferry  struck  a  mine  off  Mariupol. 
The  ferry  has  a  leak  aft.   For  the  time  being,  no  iron  ore  trans- 
ports are  allowed  to  enter  or  leave  Mariupol.  Convoy  operations 
proceeded  as  planned. 

5.    Special  Items: 

(1)  After  an  investigation,  Group  South  reports  that  the 
Army's  accusations  concerning  transport  operations  in  the  Sea  of 
Azov  are  incorrect,  since  there  are  no  Army  ferries  at  all  In  the 
Taganrog  area;  Army  Group  A  has  tied  up  all  such  vessels  for  opera- 
tion "Bluecher". 

The  Group  reports  further  that  on  1  Aug.  the  route  to  Taganrog  was 
searched  for  mines  on  the  same  day  that  the  first  sea  transport 
got  under  way.   Due  to  the  enemy  situation,  the  route  from  Tagan- 
rog to  Azov  could  not  be  swept  before  4  Aug.  together  with  the 
first  transport  on  this  route.   (See  Telegram  2015.) 

This  shows  that  the  rumors  derogatory  to  the 
Navy  are  completely  without  foundation.   The  Na- 
val Liaison  Officer  to  the  Army  High  Command 
has  been  informed  to  this  effect. 

(2)  Via  Telegram  1951  the  Naval  Staff  Quartermaster 
Division  sends  Group  South  the  requested  information  on  the  suit- 
ability of  the  small  coastal  mine-laying  craft  for  the  assignments 
in  question  (see  War  Diary  51  Jul.). 


-209- 


CONFIDENTIAL 
17  Aug.  1942 

IX,   Situation  East  Asia 

No  reports  of  interest  have  been  received. 


X.        Army  Situation 

1.  Russian  Front ; 

Army  Group  A; 

The  Rumanian  III  Army  Corps  is  engaged  in  a  fight  with 
strong  Russian  rear  guards  north  of  the  Kuban  River  southwest  of 
Slavyansk.   Krimskaya  and  Abenskaya  were  captured.   South  of 
Krasnodar  the  enemy  continues  to  offer  stiff  resistance.   Our  ad- 
vance detachments  are  engaged  in  bitter  fighting  north  of  the 
Klukhor  Pass.   The  outflanking  maneuver  aimed  at  opening  the  pass 
is  in  progress.  The  forces  advancing  on  the  Elbrus  Mountain  are 
now  south  of  the  mountain  at  the  Bashi  Pass.  Advance  units  of  the 
III  Army  Corps  are  south  of  Elista. 

Army  Group  B: 

The  right  wing  of  the  4th  Panzer  Army  has  pushed  west- 
ward and  has  encircled  enemy  forces  at  the  Abganerovo  railroad 
station.   Our  forces  succeeded  in  widening  the  bridgehead  on  the 
Don  River  northwest  of  Stalingrad  and  in  holding  it  against  enemy 
attacks.  The  enemy  brought  up  new  forces  south  of  Krimskaya.  Near 
Serafimovich,  the  enemy  continues  his  attempts  to  reach  the 
southern  bank  of  the  Don  River.  Enemy  attacks  near  the  mouth  of 
the  Khoper  River  and  west  of  Svoboda  were  repulsed.   Fighting  in 
the  Voronezh  area  continues.   Southeast  of  Yelets  the  enemy  is 
trying  to  widen  his  penetration  in  westerly  direction. 

Central  Army  Group; 

The  operation  in  the  Sukhinichi  area  is  making  slow  pro- 
gress due  to  stubborn  enemy  resistance  and  difficult  terrain. 
Weather  conditions  do  not  permit  our  air  support  to  be  fully 
effective.   Some  of  the  enemy  forces  have  launched  a  count eroffen- 
sive. 

All  enemy  attacks  east  of  Vyazma  were  repulsed.   Enemy  attacks  in 
the  breach  near  Rzhev  continue.   Losses  are  running  high  on  both 
s  id  e  s . 

Northern  Army  Group; 

Fighting  is  going  on  north  of  Demyansk  and  north  and 
south  of  the  land  bridge  leading  to  the  II  Army  Corps,  as  well  as 
near  Soltsy.  Enemy  troops  succeeded  in  penetrating  the  lines  of 
the  SS  Police  Division  southeast  of  Leningrad. 

2.  Finnish  Front; 

The  enemy  continues  to  dig  in  in  front  of  the  20th  Army. 
An  increased  number  of  supply  transports  were  observed  arriving  at 
the  Rybachi  Peninsula. 


-210- 


CONFIDENTIAL 
17  Aug.  1942 

3.    North  Africa: 

•  No  incidents  were  reported. 


-211- 


CONFIDENTIAL 


18  Aug.  1942 


.— 


Items  of  Political  Importance 

In  connection  with  the  Moscow  conferences  it  should  be  mentioned 
that,  according  to  a  statement  by  Harriman,  President  Roosevelt 
will  endorse  any  decision  made  by  Churchill  in  Moscow. 

U  .  £? .  o  .  f\.  « 
-    * 

The  Tass  Agency  brings  an  interesting  official  communique  accord- 
ing to  which  Molotov  has  been  appointed  the  first  of  the  13  deputy 
chairmen  of  the  Council  of  the  People's  Comraissar6,  with  the  pur- 
pose of  easing  the  burden  on  Stalin. 

It  remains  to  be  seen  whether  this  is  purely  an 
organizational  formality  or  not. 

U.S.A.  ; 

Secretary  of  State  Hull  told  the  French  Ambassador  that  the  U.S.A. 
cannot  maintain  friendly  relations  with  the  Laval  government 
because  Laval  has  publicly  declared  that  he  favors  a  German  victory. 

The  proposed  law  requiring  war  service  in  industry,  designed  to 
solve  the  labor  problem,  is  another  indication  that  the  democratic 
U.S.  is  resorting  to  totalitarian  methods. 

Brazil: 

An  official  report  from  Rio  de  Janeiro  states  that  Axis  submarines 
sank  3  Brazilian  ships  within  the  last  three  days.   The  steamers 
in  question  are  the  BAYPANDI ,  the  ARARAQUARA,  and  the  ANIBAL 
BENEVOLO.   The  BAYPANDI  is  said  to  have  been  en  route  to  northern 
Brazil  with  800  soldiers  on  board.   The  Ministry  of  the  Navy  has 
decided  to  employ  all  Brazilian  warships  for  the  protection  of 
coastal  shipping. 


Conference  on  the  Situation  with  the  Chief.  Naval  Staff 

I.  Report  by  the  Chief.  Naval  Staff  Communications  Division: 

It  is  not  assumed  that  the  loss  of  motor  mine  sweeper  R  "184" 
will  result  in  a  disclosure  of  our  codes  because,  as  reported  by 
radio  intelligence,  nobody  was  able  to  board  the  burning  vessel. 

A  further  report  deals  with  plans  to  install  additional  radar  sets 
in  the  area  between  Pantelleria  and  Sicily  and,  if  necessary,  on 
the  coast  of  French  Africa. 

II.  Report  by  the  Chief.  Naval  Ordnance  Division: 

1.  It  is  proposed  to  investigate  whether  the  28  cm.  turrets 
of  the  GNEISENAU  should  not  be  installed  in  the  west  area  rather 
than  in  Norway.   The  preparations  made  in  Norway  are  such  that 
they  could  be  utilized  for  other  turrets  just  as  well. 

2.  Since  it  has  definitely  been  decided  to  convert  the 
SEYDLITZ,  it  is  necessary  to  investigate  whether  and  how  the  4 
turrets  of  this  ship  should  be  distributed. 

-212- 


CONFIDENTIAL 
18  Aug.  1942 

3.   The  Fuehrer's  order  to  hand  over  for  use  in  western 
fortifications  all  armor  plating  and  barbettes  not  immediately 
needed  by  the  Navy,  thus  abandoning  the  battleship  model  41,  will 
make  the  advance  work  done  by  Krupp  on  the  gun  turrets  and  barrels 
completely  useless,  although  this  work  would  otherwise  have  per- 
mitted completion  of  4  instead  of  2  such  ships  5  years  after  the 
keel 8  were  laid.   It  must  be  kept  in  mind  that  the  planned  large 
expansion  of  the  Krupp  Company,  necessary  for  the  development  of 
our  fleet,  cannot  be  started  before  the  end  of  the  war.   However, 
on  the  capacity  of  Krupp  depends  how  much  armament  can  be  produced 
in  the  60  months  needed  to  build  each  ship.  Consequently,  every 
month  which  was  utilized  for  producing  the  necessary  armament 
represented  a  gain  with  regard  to  the  number  of  ships  constructed 
simultaneously.   The  Chief,  Naval  Ordnance  Division  suggests  that 
these  conclusions  be  presented  to  the  Fuehrer. 

III.  The  Deputy  Chief,  Naval  Staff  Quartermaster  Division  submits 
the  following  schedule  for  ships  entering  shipyard: 

TIRPITZ:    From  end  of  October  till  January. 

LUETZOW:    Till  second  half  of  October  in  Kiel.   (Only  structural 
repairs  will  be  made,  since  no  preparations  have  been 
made  for  engine  repairs,  and  the  necessary  Diesel 
electric  units  are  not  available  in  any  case.) 

SCHEER:     6  weeks  in  Wilhelmshaven,  starting  immediately  on  ar- 
rival. 

KOELN:      No  shipyard  capacity  is  available  for  the  necessary 
replacement  of  cables. 

LEIPZIG:    Mid-October  to  December.   This  will  include  instal- 
lation of  degaussing  equipment  which  cannot  be  installed 
on  the  EMDEN  because  the  capacity  of  the  Wilhelmshaven 
shipyard  originally  set  aside  for  this  purpose  will  be 
used  up  by  the  SCHEER. 

NUERNBERG:  Has  just  left  the  shipyard.   Is  assigned  to  training 
duty  until  the  end  of  October. 

EMDEN:      To  leave  the  shipyard  by  1  Oct.   Thereupon  training  \ 
assignment.  x 

In  a  Very  Restricted  Circle! 

IV.  Report  by  the  Chief.  Operations  Branch.  Naval  Staff  Operations 
Division: 

1.  Report  on  American  press  and  radio  accounts  about  the 
searoh  for  the  German  raider  in  the  South  Atlantic  and  on  measures 
taken  by  our  ships  "23"  and  "28". 

2.  The  Air  Force  Operations  Staff  has  transmitted  the  fol- 
lowing answer  to  the  Naval  Staff's  request  for  allocation  of  planes 
to  the  Air  Commander,  Atlantic  Coast  for  operations  against  enemy 
planes  in  the  Bay  of  Biscay: 

"In  view  of  the  present  air  situation  in  the  Bay  of  Biscay,  whioh 
is  known  to  be  oritical  and  which  exposes  our  submarines  and 

-213- 


CONFIDENTIAL 


18  Aug.  194  2 


blockaie-runners  to  grave  danger,  the  Commander  in  Chief,  Air  Force 
has  reinforced  a  unit  stationed  on  the  Bay  of  Biscay  coast  with 
suitable  planes.   In  addition,  a  long-range  fighter  group  is  being 
organized  for  the  sole  purpose  of  protecting  our  vessels  in  the  Bay 
of  Biscay. 

"The  Naval  Staff  is  requested  to  ask  Group  West  to  ooerate  in 
direct  cooperation  with  the  3rd  Air  Force  Command  as  regards  convoy 
protection  in  the  Bay  of  Biscay." 

Group  ,rest  and  the  Commanding  Admiral,  Submarines  have  been  notified 
accordingly. 

3.  Report  on  the  weather  observation  operation  "Holzauge" 
as  recorded  in  War  Diary  of  3  Aug. 

Weather  expedition  "Knospe"  is  to  be  picked  uo  sometime  after  20 
Aug.   The  Commander  in  Chief,  Air  Force  is  unable  to  keep  his 
promise  to  send  a  plane  for  this  purpose;  Group  North  plans  to 
use  a  submarine  instead, 

4.  On  16  Aug.  the 'German  General  at  the  Italian  Armed  Forces 
Headquarters  transmitted  to  the  Armed  Forces  High  Command  and  the 
Army  High  Command  a  report  giving  the  following  estimate  of  the 
situation  and  of  the  condition  of  the  African  Panzer  Army  as  of 

15  Aug. : 

Our  situation,  which  continued  critical  until  the  early  days  of 
August,  has  eased.   As  far  as  personnel  and  materiel  are  concerned, 
the  condition  of  the  African  Panzer  Army  has  considerably  improved, 
and  its  morale  is  high. 

The  enemy  must  be  expected  to  bring  up  substantial  reinforcements 
to  the  front  toward  the  end  of  August.   In  addition,  another  large 
contingent  of  reinforcements,  for  which  the  enemy  will  undoubtedly 
wait  before  launching  his  offensive,  must  be  expected  to  arrive 
toward  the  middle  of  September.  Until  the  end  of  August  the  Germans 
and  Italians  will  have  a  certain  superiority  in  tanks,  as  well  as 
in  heavy  artillery.   Up  to  that  time,  we  will  6till  have  a  fair 
chance  of  breaking  through  on  the  southern  wing  of  the  front.   For 
this  reason,  Rommel  and  the  Commanding  General,  Armed  Forces,  South 
consider  the  time  around  26  Aug.,  "'hen  the  phase  of  the  moon  offers 
the  best  chances,  as  most  propitious  for  an  attack.   A  postponement 
would  greatly  reduoe  our  chances  (on  account  of  the  enemy's  superi- 
ority in  the  air)  and  the  Axis  forces  "/ould  have  to  wait  another  4 
weeks  for  a  full  moon. 


Situation  18  Aug.  1942 
I.   War  in  Foreign  Waters 
1.    Enemy  Situation: 

South  Atlantic: 

According  to  an  intelligence  report,  American  troop 


-214- 


CONFIDENTIAL 
18  Aug.  1942 

transports  are  being  shipped  to  Africa  via  Charleston  and  New 
Orleans  along  the  coast  of  Central  and  South  America  to  Natal  and 
from  there  to  Gabon.   A  convoy  of  5  to  6  transports  is  reoorted  to 
leave  every  week. 

The  Naval  Attache  in  Buenos  Aires  reports  that  on  10  Aug.  the  QUEEK 
ELIZABETH  departed  from  Rio  de  Janeiro  in  northerly  direction. 

In  spite  of  or  as  a  result  of  the  continuing  lively  discussion  in 
the  press  about  the  chase  after  the  German  raider  in  the  South 
Atlantic,  official  circles  in  Rio  de  Janeiro  doubt  that  such  a  raid' 
exists  and  .consider  the  story  a  fabrication  of  Axis  propaganda. 

The  submarine  warning  issued  on  17  Aug.  for  the  area  west  of  the 
Congo  estuary  was  cancelled. 

According  to  a -message  from  Simonstown,  on  16  Aug.  an  unidentified 
steamer  reported  a  mine  in  the  100-fathom  zone  in  a  swept  channel, 
presumably  off  Cape  Town. 

Indian  Ocean: 

Japanese  planes  again  attacked  2  British  steamers  in 
the  Bay  of  Bengal. 

2.    Own  Situation: 

Via  Radiogram  2130  ship  "10"  is  beine  informed  that  the 
TANNENFELS  will  arrive  at  point  "Kupfer-B"  around  28  Aug.  and  that 
she  will  be  able  to  take  aboard  the  prisoners  from  ship  "10". 
After  taking  over  the  supplies,  ship  "10"  is  directed  to  release 

the  TANNENFELS  for  her  voyage  home. 

Via  Radiogram  1536  all  vessels  in  foreign  waters  are  being  informed 
of  the  operations  against  the  enemy  convoy  in  the  western  Mediter- 
ranean. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

No  noteworthy  reports  have  been  received. 

2.  Own  Situation: 

Atlantic  Coast: 

On  17  Aug.  the  blockade-runner  WESERLAND  departed  as 
planned.   Group  West  is  in  command.   The  fair  weather  with  good 
visibility  is  unfavorable  for  a  sucoe.ssful  departure.   At  1230  an 
enemy  plane  circled  over  the  WESERLAND  in  quadrant  BF  8684  causing 
her  to  steer  back  toward  the  east  along  the  Spanish  coast.  Group 
West  has  ordered  the  ship  to  turn  back  again,  if  the  enemy  no  longer 
maintains  contact,  and  to  try  to  break  through  once  more  within  or 
along  the  borders  of  the  Spanish  territorial  waters.   In  any  event, 
forces  of  the  Commanding  Admiral,  Defenses,  West  are  posted  in  the 
St.  Jean-de-Luz  area,  ready  to  bring  her  in,  and  the  Air  Commander, 


-215- 


CONFIDENTIAL 
18  Aug.  1942 

Atlantic  Coast  has  been  asked  to  make  an  inspection  flight  over 
the  Spanish  territorial  waters,  if  possible,  and  to  reoort  position 
and. course  of  the  Bhip  upon  landing.   Group  West  ordered  the 
UCKERIJARK  to  depart  for  the  second  time  on  18  Aug. 

Channel  Coast: 

From  0048  to  0158  the  British  battery  at  St.  Margaret  at 
"Cliff f  fired  26  rounds  at  our  coast  without  scoring  a  hit.  The 
4th  PT  Boat  Flotilla  gave  up  its  mine  operation  in  the  night  of 
17  Aug.  because  of  fog.   For  brief  report  see  Telegram  0815. 

At  0230  the  18th  Patrol  Vessel  Flotilla  had  an  engagement  with 
enemy  motor  gun  boats.   1  enemy  vessel  was  definitely  sunk  and 
one  was  probably  sunk,  while  several  others  were  set  on  fire.   For 
brief  report  see  Telegram  1300. 

Patrol  vessel  "406"  sank  in  quadrant  BF  9349  as  a  result  of  a  mine 
hit. 


III.  North  Sen,  Mnrwav,  Am  tin  On  Ran 

1.  North  Sea: 

-  Enemy  Situation: 

Lively  reconnaissance  activity  was  reoorted  over  the 
entire  North  Sea  area. 

Own  Situation: 

During  the  day  enemy  planes  made  isolated  reconnaissance 
flights  over  the  northwestern  coast  of  Germany.  Our  fighters 
failed  to  make  contact  with  the  enemy.  Convoy  and  patrol  opera- 
tions in  the  area  of  the  Commanding  Admiral,  Defenses,  North  pro- 
ceeded according  to  plan  without  incidents. 

The  Commanding  Aimiral,  Defenses,  North  and  the  XII  Air  Corps  have 
agreed  upon  the  organization  of  night-fighter  action  against  mine- 
laying  enemy  planes  in  the  North  Sea  area.  A  similar  arrangement 

exists  in  the  area  of  the  Commanding  Admiral,  Defenses,  Baltio 
Sea.   For  details  see  Telegram  1135. 

The  Naval  Staff  has  no  objections. 

2.  Norway.,  Arctic  Ocean: 

Enemy  Situation: 

Air  reconnaissance  reported  1  battleship  of  the  KING 
GEORGE  V  class,  2  heavy  cruisers,  1  light  U.S.  cruiser,  2  destroy- 
ers, 4  tankers,  and  8  steamers  in  the  Hval  Fjord.   2  large  pas- 
senger shiDS,  1  tanker,  13  steamers,  1  U.S.  destroyer,  and  other 
vessels  were  observed  in  the  roadstead  of  Reykjavik. 


-216- 


CONFIDENTIAL 
18  Aug.  1942 

Own  Situation: 

Mine-sweeping  and  convoy  operations  in  the  area  of  the 
Commanding  Admiral,  Norway  proceeded  according  to  plan  without  in- 
cident.  On  17  Aug.  an  enemy  submarine  which  had  been  sighted  in 
quadrant  AC  8425  was  chased  without  success.   A  German  convoy 
anchored  temporarily  in  the  Bas  Fjord  because  of  the  submarine 
menace.   Destroyer  Z  "23"  departed  from  Trondheim  in  northerly 
direction. 

Operation  "Wunderland" : 

3  destroyers  of  the  5th  Destroyer  Flotilla  entered  Tromsoe 
where  they  remain  ready  to  be  sent  into  action  on  3  hours  notice. 

The  Admiral,  Arctic  Ocean  ordered  submarine  U  "456"  to  deliver  am- 
munition to  submarine  U  "209"  in  quadrant  AT  7125  on  19  Aug.  at 
1200.   Prior  to  that,  submarine  U  "456"  is  to  reconnoiter  the  coasts 
north  of  710  401  N,  while  submarine  U  "209"  will  do  so  south  of 
that  latitude.   Submarine  U  "456"  has  been  ordered  to  report  com- 
pletion of  the  assignment  by  short  signal,  whereupon  the  2  sub- 
marines will  return  to  their  previous  areas  of  operations. 

The. Naval  Staff  would  have  preferred  complete 
radio  silence. 

Otherwise  there  'was  nothing  to  report. 


TV.   SkagarraV,  Raltin  Srs  TTnt.Tannfts,  Raltin  Sf»a 

1.  Enemy  Situation: 

No  incidents  were  reported. 

2.  Own  Situation: 

Final  losses  from  the  steamer  WURI  have  not  yet  been 
determined. 

Weather  conditions  hampered  mine-sweeping  operations  in  the  area 
of  the  Commander,  Mine  Sweepers,  Baltic  Sea.  Convoy  operations 
proceeded  as  scheduled. 

2  of  our  mine  sweepers  drove  an  enemy  submarine  which  had  been 
spotted  by  a  reconnaissance  plane  into  the  minefield  "Seeigel  19". 
An  explosion  was  observed  3  miles  northwest  of  Tytersaari. 

In  order  to  speed  up  preparations  for.  the  6th  PT  Boat  Flotilla 
operations  in  the  Baltic  Sea,  the  Naval  Staff  has  ordered  the  Com- 
mander, PT  Boats  to  dispatch  an  officer  suited  for  this  task  to 
Group  North.   Basically  the  Naval  Staff  upholds  its  intention  to 
employ  the  6th  PT  Boat  Flotilla  in  the  west  area.   Its  temporary 
assignment  to  the  Commander,  Mine  Sweepers,  Baltic  Sea  for  use  in 
the  Gulf  of  Finland  will  only  be  ordered  if  the  situation  does  not 
permit  any  other  course.   A  directive  is  therefore  issued  to  Group 
North,  the  Fleet,  and  the  Commander,  PT  Boats,  with  copies  to 


-217- 


CONFIDENTIAL 
18  Aug.  1942 

Group  West  and  to  the  Commander,  Mine  SweeperB,  Baltic  Sea,  re- 
questing that  the  preparations  for  operations  of  the  6th  PT  Boat 
Flotilla  in  the  west  area  rece  ive' priority ,  while  the  Baltic  Sea 
assignment  of  the  flotilla  is  to  be  prepared  only  as  far  as  it 
does  not  interfere  with  the  preparations  in  the  west  area.   (See 
Telegram  1717.) 

The  Chief  of  the  Naval  Liaison  Staff,  Finland  reports  that  at  his 
request  the  Finnish  Commander  in  Chief,  Navy  promised  to  take  ap- 
propriate steps  for  obtaining  from  Marshal  Mannerheim  the  release 
of  the  small  coastal  mine-laying  craft  and  Italian  subchasers  from- 
Lake  Ladoga. 


V.    Submarine  Warfare 

1.  Enemy  Situation: 

Reconnaissance  activity  in  the  Bay  of  Biscay  was  very 
lively.  One  plane  reported  that  it  attacked  and  allegedly  badly 
damaged  a  submerging  submarine  250  miles  southwest  of  Vigo. 

Reports  of  submarine  attacks  were  intercepted  from  southwest  of 
Santiago,  southwest  of  the  Mississippi  estuary,  off  Curacao,  and 
southeast  of  Bahia.   An  unknown  steamer,  the  WEST  FELMAR,  was 
torpedoed  west  of  Trinidad. 

2.  Own  Situation: 

No  reports  of  importance  were  received  from  the  North 
Atlantic.  Submarine  U  "553"  re-established  contact  with  the  oonvoy 
west  of  Windward  Passage.   The  convoy  was  reported  to  consist  of 
20  steamers,  with  2  destroyers  preceding  and  2  corvettes  following. 
The  submarine  sank  2  steamers  from  this  convoy,  totalling  11,000 
GRT,  and  torpedoed  another  steamer  of  5,000  GRT.  The  operation 
is  being  continued. 

Submarine  U  "508"  located  a  westbound  convoy  consisting  of  20  ves- 
sels in  the  western  entrance  to  the  Florida  Strait.   During  the 
attack  the  submarine  heard  2  hits. 

Contact  with  the  convoy  west  of  the  Azores  was  maintained  until 
midnight.  In  the  attack  made  during  the  day,  submarine  U  "214" 
sank  4  steamers  totalling  20,000  GRT  from  this  convoy.   A  freight- 
carrying  sailing  vessel  was  sunk  in  the  Mediterranean.   In  ad- 
dition to  2  submarines  and  planes,  destroyer  ZG  "3"  was  also  sent 
to  escort  submarine  U  "83"  which  is  unable  to  submerge.  For  de- 
tails see  Supplement  to  the  Submarine  Situation  in  War  Diary,  Part 
B,  Vol.  IV. 


-218- 


CONFIDENTIAL 
18  Aug.  1942 

VT.   Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

Reconnaissance  flights  were  carried  out  over  the  area 
off  the  British  Isles  during  the  day.  At  night  small  numbers  of 
our  planes  attacked  Norwich.   On  the  night  of  18  Aug.  some  100 
enemy  planes  penetrated  into  the  eastern  part  of  the  Reich  ter- 
ritory.  Bombs  were  dropped  on  Danzig.   It  is  to  be  assumed  that 
mines  were  dropped  in  the  Baltic  Sea  entrances,  the  Kiel  Bay,  and 
in  the  German  Bight. 

2.  Mediterranean  Theater; 

Radio  intelligence  reports  that  the  transport  of  fighter 
planes  to  Malta  has  been  completed.  Reconnaissance  operations 
against  the  enemy  forces,  reported  on  17  Aug.,  failed  to  yield  any 
results.   Otherwise  there  is  nothing  to  report. 

3.  Eastern  Front: 

Reconnaissance  flights  were  made  over  the  Black  Sea,  the 
Caspian  Sea,  and  the  Arctic  Ocean.   71  enemy  planes  were  reported 
shot  down  'on  the  eastern  front  of  the  Army. 

4.  Special  Items; 

a.  For  information  about  mine-sweeping  plane  production 
and  the  planned  distribution  of  the  new  planes  see  l/Skl  I  op 
20321/42  Gkdos.  in  War  Diary,  Part  C,  Vol.  V. 

b.  Mine-sweeping  planes  under  the  operational  command 
of.  Group  North  have  been  assigned  as  follows:  3  to  the  Commanding 
Admiral,  Defenses,  North;  3  to  the  Commanding  Admiral,  Defenses, 
Baltic  Sea;  3  to  the  Naval  Station,  Baltio;  1  (later  3)  to  the 
Commanding  Admiral,  Norway. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation.  Mediterranean: 

Upon  completion  of  the  transport  of  planes  to  Malta  the 
aircraft  carrier  FURIOUS,  1  cruiser  of  the  DIDO  class,  10  destroyers, 
and  2  oorvettes  re-entered  Gibraltar  from  the  east  in  the  morning. 
The  ILLUSTRIOUS  entered  dock  on  18  Aug.   The  RODNEY  and  another  air- 
craft carrier  of  the  ILLUSTRIOUS  class  have  not  been  observed  in 
Gibraltar  since  16  Aug.   They  are  presumed  to  have  departed  in 
westerly  direction. 

In  the  eastern  Mediterranean,  Italian  air  reconnaissance  reported 
in  the  morning  that  a  cruiser  and  a  destroyer  were  proceeding  on 
a  southerly  course  75  miles  west  of  Haifa. 

2.  Own  Situation.  Mediterranean:  ,. 

In  the  night  of  17  Aug.  enemy  planes  made  major  attacks 
on  Tobruk  and  Marsa  Matruh.   No  damage  was  reported.   Otherwise 
there  was  nothing  to  report. 

-219- 


18  Aug.  1942 


CONFIDENTIAL 


3.  Transport  of  Supplies  to  North  Africa; 

The  motor  ship  BIXIO  has  been  brought  into  Navarino.  She 
has  3,200  war  prisoners  on  board. 

In  the  night  of  17  Aug.  enemy  planes  sank  the  motor  ship  PILO 
(6,836  GRT)  en  route  to  Tripoli  45  miles  south  of  Pantelleria. 

Enemy  reconnaissance  planes  located  and  repeatedly  attacked  the 
convoy  of  the  GITTA  DI  ALESSANDRIA  en  route  from  Suda  to  Tobruk. 

In  view  of  the  heavy  steamer  losses  sustained  during  the  last  few 
days,  the  scarce  Italian  naval  and  air  escort  forces  available  are 
at  present  being  used  for  one  convoy  at  a  time.   This  will  in- 
evitably lead  to  a  serious  delay  in  the  transport  of  supplies. 

4.  Area  Naval  Group  South; 
Aegean  Sea: 


was  sent  to  render  aid  to  submarine 
in  the  Aegean  Sea  proceeded  aocording 


Destroyer  ZG  "3" 
U  "83".  Convoy  operations 
to  plan  wi-thout  incident. 

Black  Sea: 

Enemy  Situation: 

Air  reconnaissance  reported  1  battleship,  2  heavy  cruisers 
(l  damaged),  5  destroyers  (2  in  dock),  11  steamers,  2  tankers,  and 
25  small  vessels  in  Poti.  1  heavy  cruiser  under  cover,  1  destroyer, 
2  tankers,  and  4  steamers  were  spotted  in  Batum.  Observation  was 
inoomplete.  No  warships  were  sighted  in  the  Caspian  Sea  harbors 
or  on  the  Volga  River.   The  4th  Air  Force  assumes  that  the  enemy 
troops  are  embarking  in  Tuapse  at  night. 

Own  Situation: 

« 

Bad  weather  during  the  night  of  16  Aug.  dispersed  the 
landing  craft  group  proceeding  from  Constanta  to  the  Crimea.   1 
barge  returned  to  the  port  of  departure;  3  barges  entered  Crimean 
ports.   No  report  has  as  yet  been  received  about  the  remaining  2 
vessels. 

The  Italian  submarines  CB  "2"  and  CB  "6",  which  left  Constanta  on 
17  Aug.,  were  likewise  forced  to  return  because  of  bad  weather. 

The  prevailing  weather  conditions  prevented  the  feint  landing  on 
the  southern  coast  of  the  Taman  Peninsula  scheduled  to  take  place 
on  the  night  of  17  Aug.  as  part  of  operation  "Bluecher  II". 

Convoy  operations  proceeded  as  planned, 

5.    Special  Items: 

a.   The  Army  Quartermaster  General  reported  to  the 
Fuehrer  on  the  question  of  employing  steamers  for  the  transport 
of  supplies  in  the  eastern  part  of  the  Black  Sea.   The  Fuehrer 
agrees  with  the  position  of  Group  South  that  the  steamers  should 
not  proceed  beyond  Feodosiya  for  the  time  being  since,  in  hie 
opinion,  steamer  losses  in  the  Black  Sea  must  be  avoided. 


-220- 


CONFIDENTIAL 
18  Aug.  1942 

The  Naval  Staff  informed  Group  South,  the  Naval  Liaison  Officer 
to  the  Army  High  Command,  and  the  Naval  Liaison  Officer  to  the 
Air  Force  Operations  Staff  to  this  effect  via  Telegram  1717. 

b.   For  suggestions  made  by  Group  South  with  reference 
to  the  installation  of  a  new  weather  station  in  the  Caspian  Sea 
and  a  radio  mast  in  Sevastopol  see  Telegrams  1730  and  1955. 

The  Naval  Staff  Quartermaster  Division  will  take  care  of  the  matter 


VIII.  Situation  East  Asia 

No  noteworthy  reports  have  been  received. 


IX.   Armv  Situation 

1,   Russian  Front; 

Army  Group  A; 

The  V  and  XLIV  Army  Corps  of  the  Ruoff  Army  Gro.up  are 
engaged  in  heavy  fighting  on  the  northern  slopes  of  the  Caucasus 
Mountains.   The  Rumanian  3rd  Army  succeeded  in  extending  its  ad- 
vance bridgeheads  north  of  the  Kuban  River  in  westerly  direction. 
Numerous  enemy  forces  are  still  holding  their  positions  in  the 
industrial  district  of  Maikop.   Detachments  of  the  XLIX  Mountain 
Corps  have  reached  the  high-mountain  ridge.   The  Klukhor  Pass  has 
been  taken. 

The  enemy  is  covering  the  retreat  of  his  major  forces  toward  the 
east  and  southeast  in  front  of  the  1st  Panzer  Army  with  strong  rear 
guards  and  superior  air  power.   The  23rd  Panzer  Division  started 
the  bridge  construction  west  of  Maisky  and  is  again  under  heavy 
attack  by  enemy  planes.   The  remaining  forces  of  Army  Group  A  are 
advancing  as  planned  in  southeasterly  direction,  encountering  only 
slight  enemy  resistance  in  some  places. 

Armv  Group  B: 

The  24th  Panzer  Division  took  over  the  protection  of  the 
4th  Panzer  Army  flank  west  of  the  chain  of  lakes  stretching  south 
of  Tsatsar.   Enemy  tank  attacks  against  the  Don  bridgehead  north- 
west of  Stalingrad  were  unsuccessful.   Southeast  of  Kremenskaya, 
enemy  troops  crossed  the  Don  River  and  broke  through  our  weak 
defenses.   The  22nd  Panzer  Division  is  being  sent  into  action. 
Enemy  attempts  to  cross  the  river  in  the  area  of  the  8th  Italian 
Array  were  prevented.   This  was  the  first  day  in  a  long  time  that 
everything  was  quiet  in  the  Voronezh  area  and  south  of  Yelets. 

Central  Army  Group; 

The  operation  in  the  Sukhinichi  area  came  virtually  to 
a  standstill  before  the  strongly  fortified  enemy  position  near 
Zhizdra.   Enemy  attacks  east  of  Vyazma,  south  of  the  Vyazma -Moscow 

-221- 


CONFIDENTIAL 
18  Aug.  1942 

highway,  east  of  Gzhatsk,  and  in  the  area  east  of  Sychevka  were 
repulsed.  Heavy  enemy  attacks  '-carried  out  with  tank  support  north 
of  Rzhev  also  failed.   The  enemy  suffered  considerable  losses. 

Northern  Army  Group: 

Enemy  attacks  on  the  Demyansk  front,  southeast  of  Staraya 
Russa,  south  of  the  land  bridge  leading  to  the  II  Army  Corps,  and 
near  Soltsy  were  repulsed.   Our  thrust  southeast  of  Leningrad  was 
stalled  by  artillery  fire. 

2.  Finnish  Front: 

0 

No  incidents  were  reported. 

3.  North  Africa: 

No  noteworthy  reports  have  been  received. 

********  ******  *********** 


_ooo_ 


CONFIDENTIAL 
19    Aug.    19)42 

Items  .of    Political   Importance 

The  conferences  between  Churchill  and  Stalin  in  Moscow  are  being 
followed  closely  in  Gre.-t  Britain  and  the  neutral  countries. 
Lacking  any  detailed  information  about  the  decisions  made  during 
these  conferences,  the  newspapers  are  indulging  in  lively  specu- 
lation, particularly  on  the  subject  of  the  second  front,  in  view 
'of  the  presence   in   Moscow    of   military  advisers. 

It  is  obvious  that  the  Chungking  Government  was  not  represented 
at  the  Moscow  conference,  since  care  was  taken  to  eliminate  any 
discussion    of    Japan. 

Changes    in   command  were    made    in  North  Africa    immediately  follow- 
ing  Cnurchill's   stay  at   Cairo.      Auchinleck  was   replaced  by 
General   Alexander   as   Commander   in   Chief    in   the_  Middle   East.      Gen- 
eral Montgomery  succeeded  General   Ritchie   as   Commanding  General 
of   the    8th  Army.      It   remains    to  be   seen  what    task  will  be    assigne- 
to  Auchinleck.      He   may  have  been   released  for   some    special   task 
in   connection  with  the  Moscow   decisions.    (Caucasus   Army?    1) 

Great  Britain: 

Axis    propaganda  presents   the    landing   of   British  and   Canadian 
troops    at  Dieppe,   which  was  carried   out    this   morning,   as   an  act 
of   desperation  prompted  by   the   Moscow  decisions,    or   rather  by 
Stalin's   demand.      A  British  broadcast   called   on    the  French 
people  .to  abstain  from  any  action   that  might    jeopardize   their 
safety.      The   day   on  which  the   French  people   will  be   asked   to 
take    action  has   not   yet   arrived. 

Discussions    of  the    Anglo-American  air   offensive  against  Germany 
in  the   Sunday  Times    and  the  New  York  Times    indicate   that,    in   the 
opinion   of  the  British,    American  bombers  and  their   crews   have   so 
far  failed  to  live    up   to  the   high  hopes   placed   in   them.     For 
details    see   political  Review  No.    I93 ,    Paragraph  2. 

India: 

Neutral   as  well   as   American  press   reports   reveal   that  the   Allies 
are  continuing   their   efforts   to  bring  about  a  compromise   agree- 
ment between  Great  Britain   and  the   Congress   Party,    "in   order   to 
ensure   India's  full  cooperation  for   the  Allied  cause".     For  de- 
tails see   Political   Review  No.    193>    Paragraph  3. 

U.S.S.R.  : 


A  Polish  diplomat  in  Moscow  asserted  that  a  separate  peace  be- 
tween Germany  and  Russia  is  out  of  the  question.   The  Moscow 
conference  merely  served  the  purpose  of'  establishing  whether 
Russia  can  hold  out  until  winter.   The  Russians  did  not  present 
an  ultimatum  to  Britain.   Although  the  Russian  people  feel  dis- 
appointed by  the  British,  there  is  no  deep  resentment-   Otherwise, 
however,  the  Russians  continue  to  be  as  reticent  as  usual  and  do 
not  allow  anybody  insight  into  their  real  situation.   Their  main 
line  of  defense  has  been  shifted  to  the  Caucasussbut  they  are 
firmly  determined  to  hold  Stalingrad  at  all  cost. 

Chile; 

The  visit   of   President    RIos   to  the  U.S.A.    on  Roosevelt's   invitation 

-223- 


CONFIDENTIAL 


19   Aug.    19^2 


has  been  set  for  the  autumn,  chiefly  in  order  to  gain  time 
in  case  the  situation  develops  in  favor  of  the  Axis, 

Brazil:  i  % 

— — — —  »» 

According  to  an  official  report,  Axis  submarines  sank  5  Brazilian 
vessels  plying  between ^Brazilian  harbors  on  16  and  17  Aug.  President 
Vargas  denounced  the**  sinkings  a#  piracy  and  announced  that  Axis 
ships  and  the  property  of  Axis  citizens  will  be  confiscated  in 
retaliation. 

Japan: 

The   Cabinet   decision  adopting  a   J>0%  cut   in  government   personnel 
amounts   to  a   reduction  in  force   of    some   125,000  employees, 
20,000   of  whom  will  be    incorporated  in  the   military  administration 
In   the  conquered  territories, 

Sweden: 

On  18  Aug.  a  Russian  submarine  sank  the  steamer  LILJEVALCH  (8,770 
GRT)  in  the  Swedish  territorial  waters  off  Vaestervlk.  The  ship 
was  proceeding  in  an  escorted  convoy. 

Spain: 

According  to  a  Vichy 'Telegraphic  Service  (Ofi)  report,  an  attempt 
was  made  on  the  life  of  War  Minister  Varela,  allegedly  killing 
200  persons.  The  Minister  is  unhurt. 

This  incident  throws  a  revealing  light  on  the 
domestic  situation  in  SpainI 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  '  The  Chief,  Naval  Staff  Communications  Division  reports  tnat 
our  radio  intelligence  service  has  intercepted  U.S.  radio  call 
names,  possibly  of  submarines,  in  the  Mediterranean. 

II.  The  Deputy  Chief,  Naval  Staff  Quar-termaster  Division  dis- 
cusses the  demands  for  the  defense  of  the  west  area  against 
enemy  landings,  raised  as  a  result  of  the  Inspection  tour  of 
the  Commander  in  Chief,  Navy  In  France  (see  War  Diary  8  Aug.). 
The  Naval  Staff  Quartermaster  Division  has  examined  all  the 
Issues  pertaining  to  its  authority,  and  has  clarified  the  sit- 
uation to  such  an  extent  that  the  matter  can  be  considered 
settled.  A  few  unsettled  questions  (such  as  alleged  lack  of 
personnel  for  the  i^th  gun  of  the  Briere  battery  and  alleged 
shortage  of  ammunition  at  the  Mirus  battery  are  still  under  in- 
vestigation. 

III.  On  the  basis  of  a  report  by  the  Chief  of  Staff,  Naval  Staff, 
the  Commander  in  Chief,  Navy  has  ordered  that  the  special  com- 
mand unit  of  the  staff  of  the  Commanding  Admiral,  Group  South 

be  dlssolved^since  conditions  which  existed  when  it  was  established 
no  longer  prevail  and  the  present  stricter  regulations  do  not 
permit  leaving  it  with  the  Group. 

-224- 


CONFIDENTIAL 


19   Aug.    19i42 


IV.  The  Chief  of  Staff,  Naval  Staff  reports  on  the  German  Admiral, 
Tokyo.   It  Is  self-evident  that  the  posts  of  the  German  Admiral 

and  that  of  the  Naval  Attache,  Tokyo  must  be  occupied  by  two  differ- 
ent persons  if  the  emancipation  from  the  communication  channels  of 
the  Foreign  Office,  which  the  Navy  intends  to  achieve  by  the  crea- 
tion of  this  new  office  and  which  the  Armed  Forces  High  Command 
also  desires  for  the  Armed  Forces  as  a  whole,  is  to  become  a  fact. 
Such  independence  from  the  Foreign  Office  communication  channels 
has  become  absolutely -necessary  in  the-  interest  of  a  real  coopera- 
tion between  the  German  and  the  Japanese  Armed  Forces  representa- 
tives.  The  appointment  of  a  Naval  Attache  presents  great  diffic- 
ulties, especially  since  the  Admiral,  Tokyo  is  asking  for  a  special 
staff  officer.   Despite  certain  objections,  a  temporary  solution 
is  contemplated  whereby  the  Assistant  to  the  Attache,  Lt.  Commander 
Trendtel,  would  be  assigned  to  the  post  of  Attache. 

V.  The  Chief,  Foreign  Affairs  Section,  Naval  Staff  Operations 
Division  gives  a  survey  of  the  current  negotiations  of  the  German 
Armistice  Commission,  France  about  powder  and  ammunition  agree- 
ments, problems  of  "ship  tonnage,  and  reinforcement  of  the  West 
African  defenses.  For  details  see  War  Diary,  Part  C,  Vol.  VIII. 

VI.  The  Japanese  Naval  Attache  has  asked  the  German  Naval  Attache 
Section  by  telephone  to  furnish  approximately  6,000  construction 
drawings  for  motor  mine  sweepers,  to  be  taken  along  by  submarine 

I  "30".   The  Naval  Attache  Section  has  been  directed  to  answer 
the  Japanese  Naval  Attache  that  the  Navy  High  Command  agrees  that 
the  drawings  be  handed  over  and  that  the  Japanese  copy  the'  motor 
mine  sweepers;  in  both  these  questions,  however,  they  must  approach 
the  shipbuilding  firm  (Luehrssen)  directly.  Furthermore,  there  is 
not  sufficient  time  for  delivering  the  drawings  to  submarine  I  "30" . 

In  a  Very  Restricted  Circle; 

VII.  a.   The  Chief,  Operations  Branch,  Naval  Staff  Operations 
Division  discusses  the  reports  of  the  Naval  Liaison  Officer  to  the 
Commander  in  Chief,  Air  Force  of  15  and  18  Aug.  The  Commander 

in  Chief,  Air  Force  has  issued  orders  to  make  every  effort  to 
shoot  down  any  planes  flying  the  route  between  England  and. Sweden. 
The  situation  at  Rzhev  has  necessitated  the  transfer  of  2  bomber 
groups  from  the  west  and  1  fighter  group  from  the  1st  Air  Force 
to  the  Air  Force  Command,  East.  It  is  of  particular  importance 
that  Rzhev  remain  in  our  hands  because  all  the  winter  supplies 
of  the  9ttl  Army  are  stored  there.   It  has  been  reported  to  the 
Fuehrer  that  our  air  raids  on  England  can  no  longer  be  expected 
to  have  any  serious  effect. 

According  to  a  report  of  the  3rd  Air  Force,  forces  of  the  Air 
Command,  Atlantic  Coast  shot  down  5  Whitleys,  2  Wellingtons 
(1  not  definitely  established),  and  1  Catalina  over  the  Bay  of 
Biscay  between  1  Jul.  and  13  Aug.) 

Only  5  British  aerial  mines  were  swept  by  minesweeping  planes  off 
Lorient  during  the  last  I4.  weeks. 

b.  For  a  further  report  on  the  situation  in  connection 
with  operation  "Wunderland"  see  War  Diary,  17  and  18  Aug. 

c.  Group  North  has  submitted  a  report  from  submarine  U  "l+O^" 
in  reply  to  the  Group's  inquiry  concerning  the  message  about 

-225- 


CONFIDENTIAL 


19  Aug.  1942 


sighting  convoy  PQ  18.   The  submarine  report  reads  as  follows: 

"The  officer  of  the  watch  on  U  "405"  sighted  2  shadows  -at  a  fine 
angle  on  the  bow  and  an  escorting  vessel  at  an  angle  of  0°  to  10° 
at  290°  on  the  direction  indicator.  The  watch  on  the  bridge, who 
is  considered  particularly  reliable,  reported  7  to  9  small  and 
large  steamers  at  0°  on  the  direction  indicator.  The  ships  were 
proceeding  approximately  on  a  30°  course*   Speed  was  not  estab- 
lished." 

Remark  by  Group  North:  With  the  visibility  not  exceeding  600 
meters,  the  information  is  so  vague  that  their  correctness  is  to 
be  doubted.   It  is  concluded  therefore  that  convoy  PQ  18  was  not 
intercepted. 

The  Naval  Staff  will  come  back  to  the  matter. 

VIII.  The  Deputy  Chief,  Naval  Staff  Quartermaster  Division  re- 
quests permission  to  issue  orders  to  Admiral  Marschall  to  pre- 
pare for  combining  the  commands  of  Group.  V/est  and  the  Commanding 
Admiral,  Prance. 

The  Commander  in  Chief,  Navy  wishes  the  orders  to  be  postponed 
until  Admiral  Saalwaechter  has  gone  on  leave. 


Situation  19  Aug.  19  42 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

No  reports  have  been  received. 

2.  Own  Situation; 

Via  Radiogram  0941  the  TANNENFELS  was  directed  to  proceed 
to  her  rendezvous  with  ship  "10M  on  28  Avg.  and  to  continue  her 
voyage  after  supplying  the  ship. 

The  Naval  Staff  sent  to  the  Naval  Attache,  Tokyo  congratulations 
for  the  D0GGERBANK  on  the  occasion  of  the  completion  of  her  long 
and  successful  war  mission.   (See  Telegram  1950.) 

Information  on  the  enemy  situation  was  sent  out  via  Radiogram  2147. 

Group  West  and  the  Naval  Office  Boulogne  received  sailing  orders 
1/Skl  I  k  1620/42  Gkdos .  Chefs,  for  the  blockade-runner  KARIN.  The 
mission  of  the  vessel  is  to  take  cargo  to  Japan.  The  date  of  de- 
parture will  be  set  by  Group  West.   The  Naval  Staff  will  take  over 
the  command  at  30°  W.  For  copy  no.  4  of  the  sailing  orders  see 
War  Diary,  Part  C,  Vol.  I. 


-226- 


CONFIDENTIAL 
19    Aug.    19)42 

II.      Situation   west  Area 

1,  Enemy  Situation; 

lor  the  probable    location   of  British  naval  forces   accord- 
ing   to   radio  decoding    and   intercept   see    l/Skl  2B595/I12  geh.    in  Vu'ar 
Diary,    Part   C,   Vol.    II  b. 

According  to  statements  by  French  fishermen,  British  planes  and  a 
rranibfer  of  British  submarines  were  sighted  in  the  area  betvjeen  I4.50 
30'  N,  J4.70  N,  6°  30 '  W,  and  9°  30"  W  daily  in  July.  Tuna  fisher- 
men, who  returned  from  their  fishing  expedition  on  11  and  12  Aug. 
ahead  of  schedule,  sighted  many  mines  adrift  at  I4.60  to  l\.rJ°  N, 
6°  10'  W.  In  many  instances  the  British  planes  strafed  the  French 
fishermen. 

During  the  day  air  reconnaissance    observed   lively  ship   traffic    in 
the   area  between   the   Isle    of  Wight    and  Dungeness,   'and  between  Dieppe 
and  Fecamp.      In    the   morning  a   convoy  consisting    of   i|   steamers, 
2  destroyers,   and   1  patrol  vessel  was   proceeding   on   a  westerly   course 
south   of   Start   Point,   while   9   steamers,   I4.  destroyers,    and  2  patrol 
vessels    were   en   route    on   a   I3O0  course    south   of   Land's  End. 

For   radio   intelligence   data   in   connection  with  the    landing   operation 
at   Dieppe   see  File    "Enemy  Landing   Operation   at  Dieppe    on   19    Aug.    I9I4.2". 

2.  Own   Situation:  , 

Atlantic   Coast: 

The  Naval  Special  Service   Department,   Bordeaux  has    submitted 
the   new   schedule  for  completion   of   shipyard  work   on   the   blockade- 
runners  which  are   to    depart   in   September.      The   resulting  changes 
in   the   previous   departure   plans  are  being  communicated  to  Group 
V.'est.     Whether   all  8   ships   will  be   able    to   depart  in   September 
will  depend   on   the   weather   and   on    the   enemy  situation.      All    of 
them  do  not   necessarily  have    to   leave.   An  attempt    should   be  made 
to  bring   out   the    PASSAT,    the   PIETRO   0RSE0L0,    the   SPICHERN,    and  the 
BURGENLAND.      For  copy   of  the    corresponding  directive   to  Group  West 
see   l/Skl  I  k   I617A2  Gklos.   Chefs,    in  War   Diary,    Part   C,   Vol.   I. 
Weather   conditions   appear  rather  unfavorable   for   bringing   out  the 
WESERLAND  and   the  UCKERMAKK.     Good  visibility  was   predicted  for 
the   area  west  and  north   of    Cape    Ortegal  in  the   afternoon.     Group 
West    transmitted   the  forecast   to  the  WESERLAND   via  Radiogram  1337» 
As   directed,   the  blockade-runner   made   another   attempt  to  break 
out   in   the    evening    of    18  Aug.,   but   at   I7I7   sne    reported  that   she 
was   attacked  by  enemy  planes  at  l\l+     18'   N,    8°   IJ4. f   W  and   shot   down 
1   Liberator,   and  that    she  headed  for  Ferrol   after   l6i|0.      Thereupon 
Group  West  directed  the   ship  via   Radiogram  1939  not   to  enter  Ferrol 
but   to  make   another  breakthrough  attempt   at   nightfall.      Shortly 
thereafter,    at    1901,    the  UCKERMARK  likewise   reported  an   enemy 
attack  by  wheeled  planes   and  the   presence    of    shadowers  beginning 
1600  while   she  was   proceeding    on  a   southerly  course   in   quadrant 
BF  76.     Group  West   directed  the   ship   to  attempt    another  break- 
through at   21  knots    in  westerly  direction,    starting   out  from 
the  northeastern  coast   of   Spain  at  I4.30  30'   N   at  nightfall.     At   1910 
the  WESERLAND  reported  from  1+3°  I4.3  *   N,    0°  13  '    W   that   she  had  warded 
off   another   Liberator  attack  and  that    the   weather  was    clear  and 
visibility  good.      On   the  basis    of   the  weather  forecast  for   20  Aug., 
Group  West   expects    reduced  and  changing   visibility  in   the   area 


-227- 


CONFIDENTIAL 


19   Aug.    I9I4.2 


through  which  the  WESERLAND  is    to  pass.     Group  West  notified 
both  blockade-runners   about   the  weather  forecast   and  about   the 
osition    of  the   northbound  enemy  convoy  which  was   located  at 
2°  J+0'   N,    17°  30'   W  on  19  Aug.   at  noon,   adding  that  the  ships 
might   eventually   overtake   or   encounter    one  another.    (See   Tele- 
gram 2200.) 


I 


r 


At  22J46  the  UCKERMARK  reported  another  attack,  this  time  by  sea- 
planes, and  at  23OO  she  reported  that  she  was  being  constantly 
attacked  and  shadowed,  and  that  she  shot  down  1  plane  and 'was 
returning  along  i^0  N  at  a  speed  of  21  knots.   At  the  same  time 
she  asked  for  fighter  protection.   The  3rd  Torpedo  Boat  Flotilla 
is  being  dispatched  to  bring  her  in.   Thus,  the  UCKERMAI.K  has  for 
the  second  time  failed  to  break  through.  It  is  also  questionable 
whether  the  WESERLAND  can  get  away.   The  only  course  left  is  to 
wait  for  more  favorable  visibility  conditions  during  the  new- 
moon  phase  in  September  and  for  the  effect  of  operations  by  our 
planes  in  the  Bay  of  Biscay  area  after  the  arrival  of  reinforce- 
ments. 

Channel  Coast; 

In  the  night  of  18  Aug.  the  5th  PT  Boat  Flotilla 
carried  out  its  mine  operations  in  quadrants  BF  2382  and  2381 
according  to  plan.  The  pursuing  enemy  motor  gunboats  passed 
the  flotilla,  which  had  stopped,  without  an  encounter.  For 
brief  report  see  Telegram  1100.   The  5th  PT  Boat  Flotilla  is  1 
scheduled  to  transfer  from  Guernsey  to  Cherbourg  in  the  night 
of  19  Aug.   In  the  same  night  13  boats  of  the  2nd  and  l+th  PT 
Boat  Flotillas  are  to  be  sent  into  action  off  the  southeast 
coast  of  England. 

Enemy  Landing  at  Dieppe; 

(1)  At  0I4.28  our  convoy  consisting  of  subchasers  "1I4.0I4."  and  "lJ4.ll", 
mine  sweeper  M  "I4.OI5",  and  5  motor  ships  encountered  superior 

enemy  naval  forces  which  consisted  of  flotilla  leaders,  several  motor 

gunboats,  and  numerous  gunboats.   The  convoy  was  dispersed  in  the 

course  of  the  engagement;  subchaser  "II1OJ4."  was  driven  off  and  was 

in  flames  when  last  sighted  10  miles  north  of  Dieppe  at  0603«   Other 

reports  stated  that  she  blew  up.   Subchaser  "ll4.ll"  and  mine  sweeper  £ 

M  "I4.OII4."  fought  separate  engagements  during  which  subchaser  "ll4.ll" 

fired  on  and  rammed  a  large  assault  boat  carrying  20  to  30  men, 

destroying  it.  Hits  were  scored  on  several  motor  gunboats  and  a 

flotilla  leader.   1  large  gunboat  was  sighted  burning,  and  1  motor 

gunboat  was  seen  drifting  bottom  up.   During  the  engagement  numerous 

enemy  planes  strafed  our  vessels.  2  bombers  and  1  fighter  were 

definitely  shot  down,  and  1  fighter  was  probably  shot  down.  The 

convoy  was  brought  into  the  roadstead  of  Le  Treport  where  it  can 

be  protected  from  the  shore. 

(2)  This  engagement  alerted  the  coast  seotor  from  Boulogne  up  to 
Cherbourg  against  the  enemy  landing  whioh  started  on  the  ooast 
near  Dieppe  at  0600.  One  landing  party  consisting  of  about  3 
regiments  with  30  tanks  debarked  from  300  to  I4.OO  landing  barges 
during  the  morning  and  suooeeded  in  establishing  footholds  on  the 
beaohes  of  Dieppe,  Belleville,  and  St.  Valery.  13  to  15  light 
naval  vessels  and  several  fighter  groups  supported  the  landing 
operations.  The  fire  opened  by  the  alerted  Army  defense  foroes 
lnflioted  heavy  casualties  on  the  enemy  landing  troops  whioh  were 

_OOQ_ 
—  l^t.0  — 


CONFIDENTIAL 
19  Aug.  1942 

thus  unable  to  send  their  tanks  Into  .action  and  to  seize  or 
hold  their  objectives,  i.e.,  batteries,  anti-aircraft  equipment, 
and,  most  important  of  all,  the  harbor  of  Dieppe,   We  were  able 
to  hold  the  15  cm.  Army  battery  no.  030  at  Pourville  in  hand  to 
hand  fighting  even  after  the  guns  had  been  blown  up. 

(3)  During  the  early  afternoon  hours  the  enemy  forces  began  to 
re-embark.   Even  while  the 'embarkation  v/as  in  progress,  the  artillery 
of  our  302nd  Division  succeeded  in  opening  effective  fire  on  3 
destroyers,  2  torpedo  boats,  and  several  landing  barges,  v/hich 
probably  sank.   In  the  evening  the  Commander  in  Chief,  West  was 

able  to  report  that  there  was  not  a  single  armed  British  soldier 
left  on  the  mainland,  and  that  while  our  losses  were  moderate,  we 
took  1,500  prisoners,  including  60  Canadian  officers,  and  de- 
stroyed 26  tanks.   The  harbor  of  Dieppe  is  undamaged  and  the  harbor 
barrage  intact.  .  A  fighter -bomber  sank  1  destroyer  of  the  HU1IT 
class  off  the  entrance  to  the  harbor.   The  Air  Force  radar  sta- 
tion near  Berneval,  for  which  a  stiff  battle  was  fought,  is  in 
usable  condition.   The  landing  was  repulsed  by  the  regular  forces 
assigned  to  the  respective  division  sectors,  without  resorting  to 
the  SS  troops  and  the  10th  Panzer  Division  which  had  been  brought 
up  as  reinforcements. 

(4)  Available  reports  as  well  as  prisoner  statements,  confirm  that 
it  v/as  planned  to  land  3  regiments.   Behind  this  advance  party 
there  were  26  transports  which  were  also  spotted  by  our  Air  Force. 

A  simultaneous  landing,  expected  to  be  made  at  some  other  point 
in  the  west  area,  did  not  materialize,  A  clear  picture  of  the  en- 
emy's actual  intentions  cannot  be  formed  as  yet.   The  forces  em- 
ployed in  the  operation  appear  too  large  for  a  mere  raid,  especially 
since  more  transports  were  standing  by  in  the  rear.   It  is  pos- 
sible that  the  Dieppe  harbor  v/as  their  first  objective  and 
that  parts  of  the  second  wave  were  to  be  landed  there  with  the 
purpose  of  establishing  a  real  invasion  bridgehead,   Hov/ever,  there 
is  no  definite  proof. 

• 

(5)  So  far,  the  Naval  Staff  has  not  received  any  reports  about  ■ 
participation  of  naval  forces  in  the  defensive  combat  on  the 
coast.   The  Armed  Forces  High  Command  Operations  Staff  assumes 
that  British  troops  also  landed  on  the  outer  edge  of  the  Dieppe 
jetty.   Our  planes  have  been  sent  into  action  against  the  main 
force  of  26  transports  which  is  withdrawing  in  westerly  direction. 
No  results  have  as  yet  been  reported. 

(6)  Between  1400  and  1530  a  lively  exchange  of  enemy  radio  mes- 
sages was  observed  by  our  radio  intelligence,  indicating  that 
the  situation  of  the  enemy  v/as  difficult  at  that  time,   A  report 
about  the  sinking  of  a  destroyer  of  the  HUNT  class  by  artillery 
fire  was  intercepted  at  1450. 

(7)  The  first  news  concerning  the  details  of  the  operation  did 
not  start  coming  in  at  the  Naval  Staff  until  noon,  and  all  re- 
ports came  from  other  branches  of  the  Armed  Forces.    Only 
after  2000  in  the  evening  did  Group  West  transmit  details  of 
vital  interest  for  the  Navy.   Thus  the  real  importance  of  the 
engagement  betv/een  our  convoy  and  the  enemy  landing  force  as 
the  initial  phase  and  a  warning  signal  very  unfortunately  failed 
to  receive  full  recognition  on  that  day.   For  the  same  reason,  no 
mention  of  the  importance  of  this  engagement  is  to  be  found  in 
the  special  communique  from  the  Fuehrer  Headquarters  announcing 

-229- 


CONFIDENTIAL 
19  Aug.  19U2 

the  success  of  the  German  coast  defense  and  the  crushing  defeat  of 
the  attacker  with  explicit  reference  to  the  political  pressure 
by  Stalin  which  had  forced  the  British  to  commit  this  act  of 
desperation. 

For  messages  and  reports  received  see  File  "Enemy  Landing  at 
Dieppe  on  19  Aug.  I9I4.2"  and  appendix  to  War  Diary,  Part  C, 
Vol.  II  b. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Ene my  Sit  ua  tl  on ; 

A  few  planes  were  observed  flying  in  the  direction  of 
the  Skagerrak.  Toward  noon  air  reconnaissance  spotted  a  south- 
bound convoy  off  Lowestoft  and  a  convoy  proceeding  on  an  un- 
specified course  off  Cromer.  Each  of  the  convoys  consisted  of 
15  to  16  steamers.   At  0^h5   motor  gunboats  were  sighted  in  the 
vicinity  of  the  Den  Helder  approach  buoy. 

Own  Situation; 

On  the  night  of  18  Aug.  about  25  enemy  incursions  were 
observed  on  a  wide  front  to  the  east  and  northeast  over  the 
German  Bight  and  Jutland  as  far  as  the  northern  tip  of  Langeland 
Island.   It  is  assumed  that  the  planes  dropped  mines.  Increased 
readiness  was  ordered  on  the  Danish  west  coast  since  enemy 
ships  were  located  by  the  radar  set  (Lamageraet)  at  Thyboroen. 
For  details  see  Telegrams  0650  and  O7I4.6.  In  the  afternoon 
single  enemy  planes  carried  out  reconnaissance  flights  over  the 
northwestern  coast  of  Germany  as  far  as  the  area  of  Hanover. 

Up  to  2000,  5  ground  mines  had  been  swept  off  Terschelling,  3 
off  Borkum,  and  1  ground  mine  was  swept  off  the  Ijmuiden  jetty. 
1  of  the  5  mines  off  Borkum  was  swept  by  a  mine-sweeping  plane. 

Convoy  and  patrol  operations  in  the  area  of  the  Commanding 
Admiral,  Defenses,  North  proceeded  according  to  plan  without 
incidents • 

Pointing  to  the  enemy  landing  at  Dieppe,  Group  North  directed 
the  Admiral,  Netherlands  and  the  Commanding  Admiral,  Defenses, 
i^orth  to  order  the  highest  degree  of  readiness  on  the  coast 
and  at  sea  and  to  limit  the  convoy  movements  to  a  minimum  until 
further  notice.   (See  Telegram  1201.) 

2.  Norway,  Arctic  Ocean: 

Enemy  Situation: 

For  details  of  photographic  reconnaissance  carried 
out  over  the  area  of  Iceland  on  18  Aug.  see  Telegram  1231. 

Reconnaissance  flights  carried  out  by  the  5th  Air  Force  over  the 
Spitsbergen  area  on  19  Aug.  failed  to  yield  any  results  of  tactical 

-230- 


CONFIDENTIAL 


19   Aug.    19i+2 


significance.      On  the  west   coast,    the   sea   was   found   free    of   ice 
as  far  as   the  Bell  Sound,   while   5   to   10$  drift   ice   was    observed  in 
the  area  between   the   Eell  Sound  and   the   Ice  Fjord.      A  total   of    11 
patrol  vessels   were   located   off   the  north  coast    of   Iceland.      In 
the   afternoon   10  to  15   large  vessels  were    in  Reykjavik. 

Own  Sltuatj  on; 

No  incidents    occurred  in  the   area    of    the   Commanding 
Admiral,   Norway. 

For  additional    remarks    on  the   report   of    submarln3  U   "I4.O5"   about 
sighting  convoy  PQ  18  see   Conference   on   the  Situation  with  the 
Chief,   Naval  Staff. 

The   Commander   in   Chief,    Air  Force   reports   that   the  weather   expedition 
"Knospe"   cannot   be   brought   In  before   the  beginning   of  September 
since   the    only  plane  which  can  be   used  for   this    purpose,    a  BV  222, 
is   being   overhauled. 

The  9th  Submarine   Flotilla  reported  that   submarine  U   "595"   sighted 
drifting  mines    in  quadrants   AE  8335,    8337,  and  8539  between   ZJ  and 
29   Jul.        Group  North  has    informed  all   submarines    in   that   area. 

Submarine  U   n[|.35",  was    ordered  to  patrol    the    approach   to  the   Ice 
Fjord  where   steamers   are    occasionally  sighted  by   our    planes. 

In   connection  with   operation   "Sunderland",    submarine   U   "601" 
was    ordered   to  withdraw   to  the   area  between   Dickson  Island  and 
White  Island  after  her   rendezvous  with  the    SCHEER.      Submarine 
U    ,'255n    is   to  patrol   the   passage  between   Cape   Zhelaniya   and   the 
ice  boundary  and  to  maintain  contact  with  worth-while   targets 
for   subsequent   operations  by  the   cruiser   SCHEER.      Submarine 
U   "251M  has  been   ordered  to  wait   for  the   SCHEER  at   770  30 '   N, 
73°  E  beginning  20  Aug.  from  1600     to    2I4.OO  and  to  proceed  im- 
mediately thereafter   to  the  area  west   of   the   Kara  Strait,   if 
ice   conditions    permit. 

\\.  enemy  patrol  vessels   opened  fire   on  submarine  U   "209"   in   the 
northern   approach  to   the  Korgtin  Strait.      The   submarine  withdrew 
farther    out   to   sea  for   the   planned  transfer   of  ammunition. 


IV.  Skagerrak,   Baltic    Sea  Entrances,   Baltic    Sea 

1*         Enemy  Situation; 

No  reports    of    importance  have  been  received. 

2.  Own  Situation; 

In  the   night    of   18  Aug.    enemy  planes   were   active   over 
the    entrances   and  the  western  part    of  the  Baltic   Sea.      It  is   assumed 
that   they  dropped  mines.      In   the   eastern  Baltic,    some    30  enemy 
planes  were    reported   over  the   Memel-TIlslt-Insterburg-Goldap  area. 
The    planes   penetrated  as    far  as    Rixhoeft,   Gdynia,    and  Danzig, 
dropping  bombs.      For  damage  and  casualties    see   Telegrams   O7IO   and 
1157*     In   the  afternoon  single  enemy  planes   carried  out  reconnaissance 
missions    over   the  area   of    Schleswig-Kolstein    and  Kiel.      Smoke 
screens  have  been   ordered  for  Kiel.      (See   Telegram  2006.) 

-231- 


CONFIDENTIAL 
19  Aug.  19U2 


Convoy  and  patrol-,  operations  in  the  area  of  the  Commanding  Admiral, 
Defenses,  Baltic  Sea  proceeded  without  incidents. 

In  the  early  morning  hours  16  Russian  bombers  attacked  a  subchaser 
group  off  Vigrund  in  the  Gulf  of  I-  inland.  Mine  sweeper  M  "30" 
suffered  casualties.  In  the  evening  of  18  Aug.  Finnish  fighters 
shot  down  16  more  Russian  fighters.  The  air  battle  was  fought 
over  an  area  extending  as  far  as  Shepel.      * 

Due  to  unfavorable  weather  conditions,  operation  "Seehund  II" 
was  postponed.  Convoy  and  mine -sweeping  operations  were  carried 
out  according  to  plan. 


V.   Submarine  Warfare 

1.  Enemy  Situation; 

Lively  air   activity  was   reported  over   the  southern  rendez- 
vous    area.     Submarine   sighting  reports   from  planes   in  connection 
with  our   operation  against^  the   convoy  east   of    the  Azores  were 
intercepted  on   several   occasions. 

Other   submarine  sighting  reports  were   intercepted  from  the   area 
east   of  New  York,   the  Florida  Strait,   and  from  the  areas   south 
of  Cuba  and  west  'of  Trinidad.      Submarine   attacks  were  reported 
from  the   area  east    of  Curacao  and  250  miles  north   of   the  Anegada 
channel   (Lesser  Antilles). 

According   to  an   intelligence   report  from  London    of    11  Aug.    a 
convoy   of    1I4.   steamers    is    being   loaded  with  tanks  and   anti-tank 
guns    on  the  Isle    of   Man. 

2.  Own  Situation: 

I),  submarines   have   left   their  bases.     For   operations    in 
the   Arctic   Ocean  see   Situation  Arctic  Ocean. 

From  the  northbound  convoy  intercepted  west   of  Trinidad,   submarine 
U   "162"   sank  a   6,000  GRT   steamer,    while   submarine  U   "564"   (Lt. 
Suhren)    sank  2   tankers   and  2   large   steamers,    totalling   28,000  GRT, 
despite  strong  defense   action  by  destroyers-  and  planes. 

The   convoy  proceeding  west   of  V^indward  Passage  has   not  been 
intercepted  again.      Submarine  U   "553"   reports  that   the   5,000  GRT 
steamer   from  this   convoy,   which  was   torpedoed   on   18  Aug.,   has 
probably  sunk. 

Submarine  U    "5IO"    sank  the   steamer  NORTHUMBERLAND  (probably 
1,255  GRT)    in   the   area   off  French  Guiana. 

A  strong    air   escort  sent    into  action  badly  hampered   our   operation 
against   the  northbound  convoy   east    of    the  Azores  which  has   reached 
the    latitude   of   Cape  Vllano.      Only  submarine  U   "l4.06M  was   still 
able    to   sink  a  6,000  GRT   steamer  from  this    convoy.      The  convoy  was 
reported   to   consist    of   15   to  20   steamers.      Several    of    our   submarines 
were  damaged  by  depth  charges    and  bombs.      The  Commanding   Admiral, 
Submarines    ordered  the   operation   discontinued. 

-232- 


CONFIDENTIAL, 

19  Aug.  19U2 

In  the  Mediterranean,  the  rescue  mission  for  submarine  U  "85" 
has  been  completed. 

For  details  from  all  operations  areas  see  Supplement  to  the 
Submarine  Situation  in  War  Diary,  Part  B,  Vol.  IV. 

3.    Special  Items: 

Concerning  the  effect  of  enemy  planes  on  our  submarine 
operations,  the  Commanding  Admiral,  Submarines  submitted  the 
following  report  to  the  Naval  Staff,  with  copies  to  Group  West, 
the  3rd  Air  Force,  and  the  Air  Commander,  Atlantic  Coast: 

The  plane  escort  of  the  enemy  convoy  located  by  our  submarines 
110  miles  east  of  the  Azores  on  16  Aug.  and  pursued  northward  was 
observed  as  early  as  l8  Aug.  420  miles  west  of  Finisterre.  By 
that  time  our  submarines  had  already  sunk  6  vessels  totalling 
31,700  GRT,  without  loss  or  damage  to  themselve-s. 

Enemy  air  attacks  on  16  Aug.  ( sic  )  resulted  in  our.  loss  of 
contact  with  the  convoy  and  in  heavy  bomb  damage  to  one  of  the 
submarines,  which  must  presumably  withdraw  entirely  from  the 
operation.   On  the  whole,  the  presence  of  even  a  few  enemy 
planes  makes  operations  against  the  convoy  very  difficult.   This 
difficulty,  however,  could  be  overcome  if  He  177 's  were  sent 
up  to  chase  the  enemy  planes  away. 

These  planes  would; 

a.   Eliminate  the  aforementioned  difficulty  for  our  sub- 
marines. 

b#   Help  to  reestablish  contact  with  the  convoy. 

c.   Offer  chances  for  successful  attacks  on  vessels  proceed- 
ing without  escort  which  have  dropped  out  of  the  convoy  due  to 
submarine  action. 

The  Naval  Staff  will  take  up  the  matter  with  the 
Air  Force  Operations  Staff. 


VI.   Aerial  Warfare 

la   British  Isles  and  Vicinity: 

In  the  course  of  our  defense  action  against  the  enemy 
landing  at  Dieppe  9^  enemy  planes  were  shot  down  definitely  and 
30  probably.  The  Naval  Staff  has  not  yet  received  any  report 
about  combat  operations  against  the  enemy  ships. 

In  the  night  of  19  Aug.  25  German  planes  attacked  Portsmouth  and 
10  attacked  alternate  targets. 

No  enemy  planes  flew  over  the  Reich  territory  in  that  night. 

2.   Mediterranean  Theater; 

No  noteworthy  reports  have  been  received. 

-233- 


CONFIDENTIAL 
19    Aug.    lQj+2 

3.        Eastern  Eront ; 

Reoonnaissance  planes  were   active    over   the  Black  Sea 
and  the  Sea   of  Azov.     Around  O9OO,    1; Russian   submarine  was   sunk 
northwest   of  Hogland  in  the  Gulf   of  Finland. 

For   reconnaissance    results  from  the  Arctic    Ocean  see  Enemy 
Situation,   Arctic    Ocean. 


VII.  Warfare    in  the   Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

The  British  Admiralty  announced  that  the  anti-aircraft 
cruiser  CAIRO  and  the  destroyer  FORESIGHT  were  lost  during  the  re- 
cent attack  on  the  convoy  in  the  western  and  central  Mediterranean 
and  that  these  ships,  together  with  the  EAGLE  and  the  MANCHESTER, 
are  the  large  war  vessel^  lost  in  'the  course  of  this  action.  66 
Axis  planes  were  shot  down,  as  compared  with  8  British  planes. 

The  destroyer  WRESTLER,  which  the  Admiralty  previouslj 
announced  as  sunk,  evidently  does  not  count  as  a  large 
vessel. 

In  reply  to  an  inquiry  by  the  Naval  Staff  (see  War  Diary  17  Aug.), 
the  German  Naval  Command,  Italy  reports  that,  according  to 
available  information,  only  2  battleships  of  the  NELSON  class 
definitely  participated  in  the  recent  convoy  operation.   One  of 
these  battleships  is  still  in  Gibraltar  in  a  damaged  condition, 
while  the  other  is  assumed  to  have  departed  westward  on  16  Aug. 

On  the  morning  of  19  Aug.  the  cruiser  CHARYBDIS  remained  at  sea 
ease  of  Gibraltar  for  a  few  hours.  The  NELSON,  the  ARGUS,  the 
FURIOUS,  1  ship  of  the  ILLUSTRIOUS  class  in  dock,  and  3  cruisers, 
one  of  them  of  the  FIJI  class  also  in  dock,  were  located  in  the 
Gibraltar  harbor.   Observation  was  incomplete.   An  agent  reports 
that  the  foredeck  of  the  NELSON  is  damaged.   One  of  the  FTJI-class 
cruisers  is  said  to  be  the  NIGERIA  and  to  have  been  hit  by 
a  torpedo. 

In  the  morning  Italian  reconnaissance  planes  sighted  3  westbound 
British  destroyers  between  La  Galite  and  Cape  de  Fer,  presumably 
en  route  from  Malta. 

I4.  steamers,  2  tankers,  3  submarines,  and  2  patrol  vessels  were 
located  in  the  harbor  of  Valletta. 

Submarines  were  sighted  off  Sfax,  east  of  Derna,  and  north  of 
Leukas  Island. 

2.  Own  Situation,  Mediterranean: 
No  incidents  were  reported. 

3.  Transport  of  Supplies  to  North  Africa; 

On  18  Aug.  an  enemy  submarine  sank  the  Italian  steamer 


-234- 


•  CONFIDENTIAL 
19  Aug.  1942 

PERSEO  (4,857  GRT )  off  Gape  Carbonara  (Sardinia).   The  arrival  of  the 
CITTA  DE  ALESSANDRIA  convoy  which  was  attacked  by  enemy  planes  en 
route  from'  Suda  to  Tobruk  on  18  Aug.  has  not  been  reported.   4  German 
landing  craft  are  en  route  from  Palermo  to  Tripoli. 

826  tons  were  unloaded  in  Tobruk  on  17  Aug.  and  930  tons  on  18  Aug. 

4.  Area  Naval  Group  South: 
Aegean  Sea: 

No  noteworthy  incidents  occurred. 

Black  Sea: 

Enemy  Situation: 

Air  reconnaissance  reported  that  2  steamers,  1  tanker,  1  war- 
ship hull,  and  the  cruiser  KOMINTERN  departed  from  Tuapse  in  the  morning, 
evidently  in  the  course  of  the  evacuation  of  this  base. 

Lively  tug  and  barge  traffic  was  observed  on  the  Volga  River.   No  notice^ 
able  changes  occurred  in  the  number  of  ships  in  Astrakhan. 

Own  Situation; 

The  Admiral,  Black  Sea  ordered  the  Commander  of  the(  Danube 
Flotilla  to  come  immediately  to  Ivanbaba  in  order  to  carry  out  mine- 
sweeping  operations  in  the  Sea  of  Azov,  the  Kerch  Strait,  and  off  the 
Caucasus  coast.   The  harbor  of  Akhtari  is  badly  damaged.   The  mine 
situation  is  unknown.   However,  according  to  a  report  of  the  Naval  Harbor 
Control  Office,  facilities  for  transshipment  and  transport  of  supplies 
are  available. 

5.  Special  Items: 

a.  According  to  a  Russian  source,  a  canal  90  to  110  cm. 
deep  connects  the  northern  Kuban  River  mouth  with  Taman  Bay  since  1941. 

b.  The  Naval  Liaison  Officer  to  the  Army  High  Command 
transmitted  to  the  Naval  Staff  and  to  Group  South  the  following  report 
of  Army  Group  A  to  the  Army  High  Command  dated  17  Aug.: 

"The  Army  Group  has  always  strictly  and  carefully  directed  every  de- 
tail of  the  various  operations  involving  the  naval  landing  barges. 

"All  in  all,  the  Army  Group  had  19  landing  barges  at  its  disposal,  as 
well  as  2  heavy  ferry  battalions.   One  of  these  battalions  and  3  land- 
ing barges  are  employed  to  carry  supplies.   One  of  the  landing  barges 
sank  upon  striking  a  mine,  leaving  a  total  of  18  landing  barges 
available. 

"5  Rumanian  divisions  and  a  strong  anti-aircraft  artillery  force  are 
to  be  brought  up  to  the  mainland  from  Kerch.   Since  the  aviation 
gasoline  required  for  operating  the  Siebel  ferries  of  the  heavy 
ferry  battalion  cannot  be  made  available  to  the  Army  High  Command, 
the  ferries  can  be  used  only  to  a  very  limited  extent.    If  the 
landing  barges  are  now  also  going  to  be  withdrawn  from  Kerch,   as 
suggested  by  the  Army  High  Command,  any  regular  and  continuous 
transport  of  personnel  across  the  sea  will  become  impracticable, 
since  no  other  ships  are  available  for  this  purpose.  Even  now  it 

-235- 


CONIIDENTIAL 


19   Aug,    191+2 


take's   at    least    2  weeks  to  bring   over  a   single   division. 

"Nevertheless,    as   soon  as    a   certain  number   of  troops  has  been 
brought    over  from  Kerch  to   the   Tainan   Peninsula,    the   Army  Group 
will   investigate    the   possibilities    of   reducing    the  number  of' 
landing   craft    operating    there   and  using  the   remaining  ones  for   the 
transport   of   supplies.    On   the  other  hand,    the  Army  Group  feels   com- 
pelled  to   point    out   that   since  the    298th  Division  has  been   likewise 
withdrawn  it  has   become    imperative    to   assign   to   its    area  the   Ruman- 
ian forces,  which    are   to  be  brought    over  from  Kerch.      They   are 
also  particularly  needed  for   defense   tasks  in   the    large    occupied 
area,    since   the   few  German  divisions   that   are   left  are   urgently 
needed  at   the   front." 


VIII.   Situation  East  Asia 

No  noteworthy  reports  have   been  received. 


IX.      Army  Situation 

1.  Russian  Front : 

Army  Gx-oup  A; 

On  the  Caucasus  front  sectors,  our  attacking  forces, 
occasionally  encountering  stubborn  resistance,  are  gaining  ground 
in  southerly  and  southeasterly  directions  according  to  plan.  The 
13th  Panzer  Division  took  Vorontsovo  east  of  Maisky  and  is  ad- 
vancing toward  the  east.   The  111th  Division  crossed  the  Kuma 
River  near  Praskoveya  and  Vladimirovka  ( 150  km.  from  the  Caspian 
Sea) . 

Army  Group  B; 

The  bridgehead  on  the  Don  River  northwest  of  Stalingrad 
was  widened  and  the  military  bridge  completed.   Enemy  attempts 
to  cross  the  river  in  front  of  the  8th  Italian  Army  were  warded 
off. 

Central  and  Northern  Army  Groups: 

Stiff,  fighting  continues  in  the  area  west  of  Byelev  and 
in  front  of  the  Zhizdra  positions,  as  well  as  in  the  penetration 
point  southeast  of  Rzhev.   On  the  northern  front  of  Rzhev  and 
near  Lyubnitsa  on  the  Demyansk  front  the  enemy  succeeded  in 
penetrating  our  lines.   Our  troops,  however,  were  able  to  seal 
them  off.  Enemy  attacks  near  Staraya  Russa  and  on  the  Pola 
and  the  Redvya  Rivers  were  repulsed.  Enemy  assembly  positions 
near  Soltsy  were  smashed,  and  the  enemy  attack  southeast  of 
Leningrad  in  the  sector  of  the  SS  Police  Division  was  brought 
to  a  halt. 

2.  Finnish  and  North  African  Fronts; 
Nothing  to  report. 

-236- 


CONFIDENTIAL 
19   Aug.    1914.2 

"    3*        France; 

At  0605  the  enemy  began  to  land  troops  iu   the  sector 
near  Dieppe.   At  1000,  debarkations  -were  still  going  on  at  Dieppe 
and  Pourville.  The  situation  was  unclear  at  ^uiberville.  Another 
landing  was  expected  at  Salnt-Aubin.   Late  in  the  afternoon  the 
landing  was  successfully  repulsed  at  every  point  (see  Situation 
West  Area). 


• 


-237- 


CONFIDENTIAL 
20  Aug.  1942 

Items  of  Political  Importance 

The  enemy  landing  at  Dieppe  is  being  widely  discussed.  Even  while 
the  operation  was  still  in  progress,  the  British  were  sending  sit- 
uation reports  to  the  French  people  by  radio  as  well  as  by  leaflets; 
they  warned  the  French  population  against  any  participation  in  the 
battle  since  the  present  operation  was  of  a  merely  temporary  na- 
ture. After  the  conclusion  of  the  operation  the  contention  that  the 
undertaking  was  not  an  invasion  attempt  but  an  action  of  limited 
scope  was  emphasized  in 'a  special  communique  of  the  British  radio, 
which  stated  that  the  main  combat  force  re-embarked  almost  to  the 
minute  according  to  schedule.   The  loss  of  92  planes  was  admitted. 

•  Information  obtained  in  the  meantime  by  the  Army 
seems  to  confirm  the  fact  that  the  undertaking  was 
meant  to  be  of  limited  scope.  -• 

Be  that  as  it  may,  the  fact  that  the  landing  was  beaten  off  will  un- 
doubtedly have  serious  political  consequences  which  will  prove  harm- 
ful to  the  enemy.  Even  if  the  undertaking  was  actually  intended  as 
a  nuisance  action  of  limited  military  scope,  from  the  political 
point  of  view  it  was  unwise,  to  say  the  least,  because  it  was  bound 
to  end  in  heavy  losses,  without  on  the  other  hand  producing  any 
visible  success.  Not  even  the  most  skillful  propaganda  will  be 
able  to  convince  anybody  that  it  paid  to  undertake  such  an  opera- 
tion just  to  destroy  the  harbor  of  Dieppe  and  a  few  batteries  and 
radar  sets  in  its  vicinity,  or  that  the  heavy  casualties  were  not 
too  high  a  price  to  pay  for  the  experience  gained.   Since  the 
constant  discussion  about  establishing  the  second  front  in  Europe 
had  been  going  on  for  weeks,  it  is  impossible  to  separate  the 
Dieppe  incident  from  this  issue  and  avert  the  political  fiasco, 
which  is  much  more  serious  when  connected  with  a  military  failure. 
It  was  therefore  to  be  expected  that  the  country  most  interested  in 
an  invasion,  namely  Russia,  would  receive  the  news  about  Dieppe 
with  extreme  coolness. 

A  noteworthy  article  about  the  results  of  the  Moscow  conference 
appeared  in  the  Neue  Zuericher  Zeltung.   It  calls  attention  to  the 
fact  that  no  mention  was  made  of  Japan  during  the  negotiations,  and 
that  the  emphasis  was  on  the  military  aspects  of  the  discussion. 
On  the  other  hand,  the  words  "second  front"  do  not  appear  in  the 
official  communique  on  the  conference.  For  details  see  Political 
Review  No.  194,  paragraph  1. 

Syria; 

According  to  a  diplomatic  source,  disagreement  has  arisen  between 
De  Gaulle  and  Catroux  because  of  the  latter' s  refusal  to  send 
troops  to  Egypt. 

Italy; 

The  Tribuna  voices  once  again  the  Italian  claims  to  Tunisia,  Cor- 
sica,  and  Malta,  mentioning  the  Italian  victory  at  Pantelleria.  It 
states,  however,  that  it  is  not  enough  to  exclude  foreign  powers 
from  the  Mediterranean  proper,  for  as  long  as  its  entrances  are  in 
foreign  hands,  the  Mediterranean  Sea  will  remain  a  prison. 

-238- 


CONFIDENTIAL 
20  Aug.  1942 

Portugal: 

In  connection  with  the  negotiations- in  South  Africa,  conducted 
by  the  Colonial  Minister,  it  is  reported  that  Prime  Minister*  Smuts 
insists  that  Mozambique  Is  too  weak  to  prevent  the  Japanese  from 
establishing  bases  there.   He  believes  that  the  situation  calls 
for  cooperation  on  the  part  of  South  Africa  and  Portugal. 


Conference  .on  the  Situation  with  the  Chief,  Naval  Staff 

I.  Following  the  experience  with  the  attempts  of  the  WESERLAND 
and  the  UCKERMARK  to  leave  port,  as  reported  in  detail  by  the 
Chief,  Operations  Branch,  Naval  Staff  Operations  Division,  the 
llaval  Staff  ha-s  arrived  at  the  conclusion  that  the  threat  of  air 
attacks,  the  weather  conditions,  and  the  present  moon-phase  make 
a  breakthrough  at  this  time  too  hazardous  for  these  valuable 
ships.   The  Chief,  Naval  Staff  agrees  that  Group  West  should  be 
directed  to  order  another  breakthrough  as  soon  as  the  enemy  sit- 
uation and  weather  condition^  appear  favorable.   This  will  pre- 
sumably .not  be  the  case  before  early  September.   It  is  more  im- 
portant to  save  the  ships  for  blockade-runner  missions  than  to 
adhere  to  the  schedule  at  the  cost  of  sure  losses. 

A  directive  to  this  effect  has  been  issued  to  Group  Vest. 

II.  Report  by  the  Chief,  Naval  Ordnance  Division: 

1.  Oil  Situation  in  Russia;   According  to  statistics,  pro- 
duction In  1940-1941  amounted  to  25,000,000  tons  in  Baku,  2,500,000 
tons  in  Maikop,  2,500,000  in  Grozny,  and  4,000,000  tons  in  the  rest 
of  Russia,  excluding  Sakhalin  Island.   The  Maikop  oil  is  particu- 
larly rich  in  gasoline.   Many  of  the  drilling  plants  in  the  Maikop 
area  are  destroyed.   2  brigades  have  been  assigned  to  drill.  To 
explore  and  put  into  operation  the  entire  Caucasian  oil  district 
would  cost   10  to  20  billion  marks. 

2.  Protection  of  the  Nile  dams  by  Egyptian  troops. 

3.  New  regulations  issued  by  the  Minister  for  Armaments  and 
War  Production,  concerning  the  following: 


ship. 


a.  Inventions  made  in  factories  under  private  owner- 

b.  Employment  of  transport  specialists. 

c.  The  duties  of  the  Armament  Office  (Ruestungskontor ) 


4.   The  effect  on  naval  batteries  of  the  Fuehrer  directive 
for  reinforcing  coastal  defenses  against  air  attacks. 

The  Chief,  Naval  Staff  will  ask  the  Fuehrer  whether  the  SEYDLITZ 
turrets  may  be  set  up  in  France  so  that  the  GNEISENAU  turrets  can 
be  left  in  Norway  as  planned. 

III.  Report  by  the  Chief,  Naval  Staff  Quartermaster  Division: 

1.   The  enemy  landing  at  Dieppe  is  viewed  very  calmly  at  the 

-239- 


CONFIDENTIAL 
20  Aug.  1942 

Fuehrer  Headquartei     The       ier  in  Chief,  West  and  the  Air 
Force  Operations  Staff  transmitted  the  news  promptly  and  in  great 
detail.   Unfortunately,  contributions  from  the  Navy  were  lacking. 

2.   While  on  a  short  visit  in  Mariupol,  the  Chief,  Naval 
Staff  Quartermaster  Division  found  6,000  tons  of  armor  in  the 
Ilich  plant,  which  is  suitable  for  strengthening  the  coastal  de- 
fenses in  the  west  area  and  in  Norway.   The  matter  has  been  re- 
ported to  the  Fuehrer. 

From  the  afternoon  of  20  Aug.  till  the  morning  of  23  Aug.  the 
Chief,  Naval  Staff  will  be  away  from  Berlin  on  an  official  trip 
to  Ploen  and  Segeberg. 


Special  Items; 

I.  The  Naval  Staff  has  summed  up  the  opposing  views  of  the 
German  and  Italian  Navies  about  a  permanent  mine  barrage  in  the 

French  territorial  waters  off  the  Tunisian  coast  on  the  basis  of  f 

the  latest  reports  and  lias  sent  this  information  to  the  Foreign 
Office,  with  copies  to  the  Naval  Representative  on  the  Armed 
Forces  High  Command  Operations  Staff,  the  German  Naval  Command, 
Italy,  and  the  German  Armistice  Commission,  France.   The  Foreign 
Office  has  been  asked  to  make  known  its  views  on  the  issue.  What 
the  Navol  Staff  wants  to  find  out  is  whether  there  are  any  real 
objections  to  the  Naval  Staff's  position  that  the  barrage  should 
be  laid  by  the  French,  who  alone  are  able  to  control  any  neces- 
sary gaps  in  the  minefield.   For  details  see  l/Skl  I  E  1616/42 
Gkdos.  Chefs,  in  War  Diary,  Part  C,  Vol.  VIII. 

II.  Radio  Intelligence  Report  No.  33/42  of  the  Naval  Communica- 
tions Division,  Communications  Intelligence  Branch  contains  a 
compilation  of  enemy  reports  intercepted  by  the  radio  decoding 
and  intercept  services  between  10  and  16  Aug.  1942. 

The  following  is  included: 

1.  Reports  on  the  naval  situation  sent  by  the  Russian 
signal  stations  on  the  I.'urman  Coast. 

2.  The  tactical  organization  of  the  naval  air  forces  of  f 
the  Russian  Baltic  Sea  fleet. 

3.  Russian  Army  radio  messages  of  6  Aug.  according  to  which 
all  supplies  stored  in  the  harbors  of  the  Caspian  Sea  and  of  the 
lower  part  of  the  Volga  River  are  to  be  brought  up  the  Volga  with 
utmost  speed. 

4.  It  is  pointed  out  that  convoy  PQ  1C  is  not  mentioned  in 
a  situation  report  intercepted  in  its  entirety  from  the  Iceland 
area  on  6  Aug.   This  may  be  considered  a  confirmation  of  the  nega- 
tive results  of  our  air  and  submarine  reconnaissance  concerning 
convoy  PQ  18. 


-240- 


CONFIDENTIAL 
20  Aug.  1942 

Situation  20  Aug.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

South  Atlantic  t 

On  19  Aug.  radio  Freetown  issued  an  urgent  message  to 
all  warships  in  its  area,  mentioning  2  positions  directly 
northeast  of  the  point  where  the  DALHOUSIE  was  attacked.   The 
message  presumably  refers  to  a  patrol. 

The  British  press  and  radio  have  repeatedly  reported  about  the 
appearance  of  a  heavily  armed  German  auxiliary  cruiser  in  the 
South  Atlantic  off  the  West  African  coast.   The  ship  is  de- 
scribed as  a  9,000  ton  vessel,  with  20  knots  speed,  armed  with 
6  guns,  some  of  21  cm.  caliber.   The  vessel  is  reported  to  have 
fired  60  rounds  on  an  American  merchant  ship  during  the  night, 
killing  15  men  and  capturing  46.   PT  boats  lowered  from  the 
auxiliary  cruiser  encircled  the  American  ship  and  sank  her  with 
3  or  4  torpedoes.   10  survivors  have  arrived  in  a  port  on  the 
Atlantic  Ocean. 

The  M0RET0H  BAY,  which  was  reported  converted  to  an  auxiliary 
cruiser  a  yea.r  ago,  left  the  La  Plata  with  a  cargo  of  meat. 

Indian  Ocean: 

An  agent  reports  that  12  ships  carrying  planes  and 
American  troops  passed  through  the  waters  off  the  Cape  bound  for 
Australia  during  the  first  week  of  August.-  According  to  the 
same  source,  the  tanker  'route  between  the  Persian  Gulf  and 
Australia  runs  via  Zanzibar. 

2.  Own  Situation: 

The  failure  of  the  UCKERMARK  and  the  WESERLA1TD  to' 
break  through  has  necessitated  a  new  arrangement  for  supplying 
ships  "23"  and  "28".   The  two  ships  have  therefore  been  ordered 
to  get  their  fuel  from  the  supply  still  left  on  the  CHARLOTTE 
SCIILIEI.IANN  which  will  arrive  at  a  rendezvous 'point  8  miles 
farther  south  than  point  "Seide"  and  at  the  same  longitude  on  22 
Aug.   The  Naval  Staff  assumes  that  ship  "28"  will  be  the  first 
to  reach  the  rendezvous  point,  and  that  in  order  to  take  over 
the  fuel  supply  she  will  head  toward  a  calm  spot  because  of  the 
prevailing  weather  conditions.   For  this  reason  ship  "23"  should 
not  steer  for  the  rendezvous  point  before  25  Aug.   After  having 
supplied  both  ships  with  fuel  oil,  the  SCHLIEMANN  is  to  pro-  . 
ceed  to  Japan.   After  refueling,, the  two  auxiliary  cruisers  are 
requested  to  report  at  their  convenience  how  long  they  can  re- 
main at  sea,  including  their  return  voyage  to  western  France, 
and  the  date  on  which  the  SCHLIEMANN  was  released. 

Preparations  are  under  way  to  bring  up  supplies  for  ships  "28" 
and  "23"  from  Japan.   (See  Radiogram  1749.) 

Via  Radiogram  1822  ship  "10"  is  directed  to  take  only  the  in- 
dispensable minimum  out  of  the  supplies  sent  with  the  TANNEN- 
FELS  and  leave  the  rest  of  the  supplies,  as  well  as  the  plane, 

-241- 


CONFIDENTIAL 
20  Aug.  1942 

for  ships  "28"  and  "23",  and  to  ^ake  over  the  prize  crews. 

Information  about  the  enemy  situation  was  sent  out  via  Radio- 
gram 2215. 


II.   Situation  West  Area 

1,  Enemy  Situation: 

In  the  morning  of  19  Aug.  air  reconnaissance  spotted 
4  steamers  with  2  destroyers  and  1  escort  vessel  on  a  westerly 
course  off  Start  Point  and  9  steamers  with  4  destroyers  and  2 
escort  vessels  on  a  northeasterly  course  off  Land's  End.   On  20 
Aug.  several  motor  gunboats  were  sighted  between  Dover  and  Hast- 
ings, 2  destroyers  and  2  steamers  were  spotted  on  a  45°  course 
south  of  Dungeness,  and  3  large  war  vessels  and  12  landing 
barges  'were  observed  in  Brighton. 

2.  Own  Situation: 

Atlantic  Coast: 

At  0921  the  blockade-runner  WESERLAND  reported  that, 
while  attempting  to  break  through  for  a  second  time,  she  was 
attacked  by  enemy  planes  at  43°  11'  N,  9°  20 »  W  during  the  night 
and  was  pursued  by  shadowers.   She  is  trying  to  reach  Finis- 
terre.  Group  West  ordered  the  ship  to  proceed  eastward  within 
or  along  the  Spanish  territorial  waters.  (See  Telegram  1035.) 

Further  orders  forbidding  the  WESERLAND  to  enter  any  Spanish  har- 
bor except  in  emergency  were  sent  via  Radiogram  1239  along  with 
the  announcement  that  3  of  the  new  mine  swejpers  are  en  route 
to  bring  her  in. 

In  the  meantime  the  Naval  Staff  informed  the  Naval  Attache  in 
Madrid  that  2  outbound  1  lockade-runners  have  been  under  constant 
attack  by  British  planes  about  20  miles  north  of  Cape  Ortegal 
from  19  Aug.  in  the  afternoon  until  tonight,  and  that  one  of  them 
turned  back  at  night  and  is  steering  for  the  French  coast  at  44° 
N, while  the  other  has  been  heading  for  Finisterre  since  0830. 
This  ship  will  presumably  enter  a  Spanish  harbor. 

At  1908  a  report  came  in  from  Group  West  stating  that  the  UCKER- 
I.IARK  had  entered  the  Gironde  at  1800.   Shortly  thereafter  Group 
West  reported  that  according  to  a  message  from  the  Naval  Attache 
in  Madrid  the  WESERLAND  entered  Corcubion  Bay  at  1100  and  in- 
tended to  proceed  eastward  at  nightfall.   Steps  are  being  taken 
to  bring  her  in.   (See  Telegram  1905.) 

At  2119  the  WESERLAND  reported  that  she  left  Corcubion  Bay  in 
easterly  direction  at  1800. 

Channel  Coast: 

Group  West  announced  that  on  19  Aug.  an  unmanned  harbor 
defense  vessel  was  sunk  in  the  harbor  of  Dieppe  and  that  the 

-242- 


CONFIDENTIAL 

20  Aug.  19  42 

harbor  was  damaged  by  artillery  fire  and  air  raids.   The  Navy 
suffered  the  following  casualties  on  19  Aug.:   11  killed,  20 
wounded,  10  missing.   Subchaser  "1404"  is  a  total  loss. 

The  Naval  Staff  expects  to  receive  a  comprehensive  report  about 
the  part  played  by  the  Navy  in  warding  off  the  enemy  landing  on 
19  Aug.  Radically  new  aspects  have  not  presented  themselves  so 
far. 

According  to  data  compiled  by  the  Air  Force,  945  German  planes 
were  sent  into  action  over  the  Channel  on  19  Aug.   The  Air 
Force  General  Staff  lists  the  following  successes  scored  against 
enemy  vessels:   1  destroyer,  1  assault  boat,  and  5  steamers  sunk, 
1  motor  gunboat  probably  sunk,  4  cruisers,  0  steamers,  2  motor 
gun  boats,  1  assault  landing  barge,  1  tug,  and  1  crash  boat  dam- 
aged. 

The  Army  General  Staff  reports  that  out  of  the  total  of  4,200 
enemy  soldiers  participating  in  the  landing  no  more  than  400  to 
500,  i.e.  the  equivalent  of  2  landing  parties,  were  Britishers. 
The  bulk  of  the  force  consisted  of  2  Canadian  brigades,  a  number 
of  Canadian  engineer  troops,  and  some  Norwegians  and  Yugoslavs. 
No  U.S.  troops  participated,  and  the  presence  of  De  Gaulle 
soldiers  is  not  confirmed^   U.S.  and  De  Gaulle  fliers  might 
possibly  have  participated  in  the  operation. 

The  objective  .was  to  land  the  Canadians  with  the  28  tanks  in  the 
center  of  the  sector  so  that  they  could  demolish  the  harbor  and 
combat  installations  of  Dieppe  and  raid  the  division  headquarters 
in  Arque-la-Bataille  (6  km.  southeast  of  Dieppe).   Upon  comple- 
tion of  this  task,  the  landing  force  was  to  withdraw.  At  the 
3ame  time  the  two  British  landing  parties  were  supposed  to  de- 
stroy the  batteries  on  both  sides  of  Dieppe  and  to  seize  the 
vessels  in  the  Dieppe  harbor  and  take  them  to  England.   On  the 
whole,  the  British  had  a  correct  picture  of  our  defenses. 

From  a  military  standpoint  such  a  limited  operation  appears 
even  less  understandable  than  from  a  political  standpoint.  A.t  best, 
the  seizure  of  Dieppe  for  a  few  hours  would  have  ,  offered  the 
enemy  facilities  for  qa  ickly  unloading  a  few  more  regiments  with 
some  heavy  weapons,  tanks,  and  guns.  According  to  the  findings 
of  the  General  Staff,  it  appears  dubious  whether  the  26  vessels 
sighted  off  Portsmouth  were  assembled  there  to  be  used  as  trans- 
ports if  the  first  landing  wave  had  been  more  successful.   But 
even  if  the  enemy  had  succeeded  in  establishing  a  bridgehead  in 
the  Dieppe  area  by  landing  a  force  estimated  to  have  totalled 
15,000  to  20,000  men,  such  an  operation  would  have  made  sense 
only  in  conjunction  with  a  successful  attempt  to  tie  up  our  re- 
serve divisions  by  simultaneously  landing  more  forces  of  a  similar 
or  larger  size  elsewhere  in  the  west  area,  and  especially,  by 
throwing  strong  airborne  forces  behind  our  lines.   Since  no  such 
plans  seem  to  have  existed — there  are,  at  least,  no  indications 
to  this  effect — the  operation  of  19  Aug.  was  bound  to  end. in  a 
military  setback  for  which  no  military  justification  can  be  offered, 

-243- 


CONFIDENTIAL 
20  Aug.  1042 

Naval  Situation  on  20  Aup;.; 

The  torpedo  operation  of  the  4th  and  1st  PT  Boat  Flotillas  against 
the  convoy  route  in  quadrants  AN  7392  and  7391  in  the  night  of  19 
Aug.  was  unsuccessful.  An  enemy  destroyer  chased  and  drove  off 
the  flotillas.   For  brief  reports  see  Telegrams  1020  and  1110. 

3  boats  of  the  5th  PT  Boat  Flotilla  have  transferred  from  Le  Havre 
to  Cherbourg. 

In  the  evening  4  rubber  rafts  with  8  Britishers  and  1  American 
aboard  were  rescued  off  Le  Treport. 

3.    Special  Items; 

Group  West  has  transmitted  the  results  of  its  experience 
with  the  3rd  Torpedo  Boat  Flotilla  operations  in  the  west  area  to 
the  Commander,  Destroyers,  with  copies  to  the  Naval  Staff  and  the 
Fleet.  The  conclusion  is  that  the  flotillas  should  be  composed  of 
torpedo  boats  of  the  same  type,  preferably  type  37.   (See  Telegram 
1115.) 


III.  North  Sea.  Norway,  Arctic  Ocean 

1.   North  Sea; 

Enemy  Situation; 

No  noteworthy  reports  have  been  received. 

Own  Situation; 

Convoy  and  patrol  operations  in  the  area  of  the  Command- 
ing Admiral,  Defenses,  North  proceeded  according  to  plan.  2  ground 
mines  were  swept  near  Elbe  I  and  a  third  one  was  swept  off  Terschel- 
ling.  Toward  midnight  enemy  planes  attacked  our  convoy  in  the 
German  Bight  three  times  without  scoring  any  successes.  Enemy  in- 
cursions in  the  Netherlands  area  and  over  the  convoy  route  between 
Vli eland  and  Terschelling  in  the  German  Bight  were  probably  for  the 
purpose  of  laying  mines. 

On  15  Aug.  the  Commanding  Admiral,  Defenses,  North  issued  operations 
orders  for  the  laying  of  minefield  5a,  code  name  "Eleanor n,  and 
minefield  10a,  code  name  "Fuenfte  Kolonne".  The  new  minefields, 
which  are  to  strengthen  the  Westwall  barrage,  will  be  laid  by  the 
mine  layers  ROLAND.  KAISER,  and  SKAGERRAK,  and  by  mine  ships  M  "82" , 
M  "102",  and  M  "20".  Escort  will  be  provided  by  the  8th  Motor  Mine 
Sweeper  Flotilla,  gunboat  K  "ln,  and  2  boats  of  the  21st  Mine 
Sweeper  Flotilla.  The  force  is  under  the  strategic  command  of  the 
Commanding  Admiral,  Defenses,  North  and  under  the  tactical  oommand 
of  the  commander  of  the  ROLAND. 

The  force  which  is  to  carry  out  the  mine-laying  operation  "Eleanor" 
has  been  ordered  to  depart  on  21  Aug. 


-244- 


CONFIDENTIAL 

■  !.■■  —■  1  ■■■  !■■!■   Ill-—     ■  !■!  ■■<■! 

20  Aug.  19  42 

2.   Norway,  Arctic  Ocean; 

Enemy  Situation; 

At  1450  radio  intelligence  intercepted  a  British  message 
about  a  submarine,  evidently  the  U  "435",  entering  the  Ice  Fjord 
(Spitsbergen) . 

At  1425  air  reconnaissance  sighted  1  battleship,  1  vessel  presumed 
to  be  a  ,light  cruiser,  and  3  destroyers  proceeding  on  a  southerly 
course  35  miles  west  of  Reykjavik,  and  at  2020  1  heavy  and  1 
light  cruiser  proceeding  on  a  270°  course  130  miles  east  of  Jan 
Mayen.   It  is  possible  that  these  vessels  are  being  sent  into 
action  against  the  expected  breakthrough  of  our  ship  into  the 
Atlantic  Ocean.   A  submarine  reported  that  according  to  sound 
location,  1  steamerwas  proceeding  on  a  60°  course  in.  quadrant  AC 
1285  toward  midnight.   No  contact  was  established,  and  it  is 
therefore  not  clear  whether  the  steamer  was  part  of  a  convoy.  In 
any  case,  it  is  quite  possible  that  the  cruisers  sighted  east  of 
Jan  Mayen  are  connected  with  it. 

In  the  afternoon  3  large  ships  were  located  in  Reykjavik  and  1 
vessel  presumed  to  be  a  light  cruiser,  2  tankers,  and  8  large 
vessels  in  the  Hval  Fjord. 

Interpretation  of  aerial  photos  taken  on  18  Aug.  showed  1  battle- 
ship of  the  KING  GEORGE  V  class,  2  heavy  cruisers  of  the  CUMBER- 
LAND class,  and  1  U.S.  cruiser  of  the  OMAHA  class  in  the  Hval 
Fjord,  and  1  U.S.  destroyer,  1  U.S.  gunboat  of  the  ERIC  class,  1 
mine  layer,  and  1  aircraft  recovery  ship,  in  addition  to  the 
previously  reported  merchant  vessels,  in  Reykjavik. 

Own  Situation! 

Due  to  prevailing  weather  conditions  the  Commanding  Ad- 
miral, Norway  has  ordered  increased  readiness  in  his  area.  Other- 
wise there  is  nothing  noteworthy  to  report. 

A  British  press  report  states  that  it  has  been  confirmed  that  a 
submarine  sank  the  steamers  B0LTENHAGEN  and  GE0RG  L.M.  RUSS.  .Thus 
enemy  submarines  are  again  operating  off  the  west  coast  for  the 
first  time  in  1  l/2  years.   Group  North  has  asked  the  Commanding 
Admiral,  Norway  for  information  about  any  defensive  steps  planned 
in  this  connection,  apart  from  mine-laying. 

Operation  'Sunderland": 

According  to  a  report  from  the  Admiral,  Arctic  Ocean, 
photographic  reconnaissance  shows  the  following: 

a.  Due  to  the  prevailing  ice  conditions,  submarines  can 
pass  through  the  Kara  Strait  only  once,  if  absolutely  necessary. 

b.  Amderma  is  nothing  but  a  small  settlement  with  a  pier. 
Coal  is  apparently  mined  above  ground  in  the  vicinity  of  the 
settlement. 

Consequently,  an  operation  against  Amderma  would  not  pay. 


-245- 


CONFIDENTIAL 
20  Aug.  1942 

Group  North  has  agreed  to  an  earlier  termination  date  for  opera- 
tion "Wunderland".  However,  the  coast  should  be  reconnoitered  in 
westerly  direction  in  any  case. 

The  information  about  Amderma  at  the  Naval  Staff  is  scarce. 

According  to  findings  by  the  Naval  Intelligence  Division,  Foreign 
Merchant  Marine  Branch,  the  convoy  which  has  been  en  route  from 
Petropavlovsk  via  the  Arctic  Ocean  to  White  Sea  harbors  since  the 
end  of  July  is  presumed  to  consist' of  23  vessels  ranging  from 
1,600  to  4,800  GRT.  For  a  list  of  ship  names  see  l/Skl  28470/42 
geh.  in  File  "V/underland". 

Group  North  has  been  informed  accordingly. 

Submarine  U  "456"  delivered  ammunition  to  submarine  U  "209"  in 

quadrant  AT  4884.   Immediately  thereafter  she  twice  attacked  an 

icebreaker  escorted  by  patrol  vessels  without  any  success  and  then 

gave  up  the  pursuit  since  the  icebreaker  seemed  to  be  equipped 

with  excellent  sound  locators.  ' 

Mine  Operations  in  the  Arctic  Ocean; 

On  10  Aug.  Group  North  issued  a  directive  to  the  Admiral, 
Arctic  Ocean',  with  copies  to  the  Naval  Staff,  the  Fleet,  and  the 
Commanding  Admiral,  Cruisers,  which  must  be  carried  out  with  ut- 
most speed  because  the  route  via  eastern  Siberia  will  be  navigable 
only  during  a  short  period. 

The  directive  refers  to  the  following  operations: 

a.  Operation  "Zar",  in  which  200  standard  mines  type  F  and  ■ 
100  type  C  are  to  be  laid  in  20  sections  off  the  northern  tip  and 
northwest  coast  of  Novaya  Zemlya.   The  undertaking  is  to  be  carried 
out  by  mine  layer  ULM. 

b.  Operations  "Zarewitsch"  and  "Romanow"  are  to  be  carried 
out  by  destroyers,  possibly  in  a  single  operation,  south  and  north 
of  Kolguyev  Island. 

c.  Operation  "Rasputin"  is  to  be  carried  out  by  the  KOELN  > 
and  2  destroyers  in  the  western  approach  to  the  Matochkin  Shar, 

In  this  case  the  ships  will  have  to  operate  to  the  very  limit  of 
their  operations  range. 

d.  Operations  "Peter",  "Paul",  and  "Iwan",  are  to  be 
carried  out  by  submarines  in  the  western  outlet  of  the  Matochkin 
Shar,  in  the  western  outlet  of  the  Yugor  Strait,  and  off  the 
Pechora  estuary. 

e.  Operation  "Rurik"  is  to  be  carried  out  by  a  submarine 
which  will  mine  the  waters  off  Amderma. 

Operation  "Knospe"t 

Acting  in  agreement  with  the  Naval  Staff  and  the  Chief 
of  the  Meteorological  Division  of  the  Naval  Staff,  Group  North 
will  try  to  send  a  submarine  to  bring  in  the  "Knospe"  personnel. 


-246- 


CONFIDENTIAL 
20  Aug.  1942 

Since  the  attempt  may  fail  because  of  prevailing  ice  conditions, 
the  weather  ship  with  automatic  weather  reporting  gear  in  Oslo, 
will  be  sent  out  simultaneously. 


IV,.  ASkagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation; 

It  was  observed  that  3  destroyers   had  changed  berths 
in  Kronstadt .   One  of  the  destroyers  practised  firing  on  a  moving 
target. 

According  to  a.  report  of  the  Air  Force  General  Staff,  photographic 
reconnaissance  carried  out  in  August  has  so  far  sh6wn  169  vessels 
in  Leningrad  and  195  in  Kronstadt.   29  of  the  vessels  in  these  two 
harbors  were  submarines.   439  vessels  were  counted  in  Lake  Ladoga, 
including  40  war  vessels,  5  auxiliary  warships,  2  torpedo  boats, 
and  32  motor  mine  sweepers  and  motor  boats. 

2.  Own  Situation: 

6  men  from  the  steamer  V/URI  were  killed  and  59  are  miss- 
ing.  The  latter  figure  might  be  revised  downward  if  some  of  the 
missing  are  found. 

On  18  Aug.  the  Commanding  Admiral,  Defenses,  Baltic  Sea  went  aboard 
the  flagship  REIKER.   Otherwise  no  incidents  were  reported  from  the 
area  of  the  Commanding  Admiral,  Defenses,  Baltic  Sea,  except  for  2 
mines  swept  off  Samsoe  and  Kallundborg. 

On  18  Aug.,  at  1400,  an  enemy  submarine  sank  the  Swedish  steamer 
LILJEVALCH  (8,770  GRT)  proceeding  in  a  16  vessel  convoy  within 
Swedish  territorial  waters  off  Vaestervik.   Swedish  war  vessels 
pursued  the  submarine  with  depth  charges  but  the  effect  could  not 
be  ascertained. 

Operation  "Seeigel  XXVII"  In  the  Gulf  of  Finland  was  carried  out 
according  to  plan.   The  laying  of  the  "Seehund"  minefield  was 
postponed  because  of  unfavorable  weather.   Mine-sweeping  and  con- 
voy operations  in  the  area  of  the  Commander,  Mine  Sweepers,  Baltic 
Sea  proceeded  according  to  plan  without  incidents. 

3.  Special  Items; 

The  Armed  Forces  High  'Command  Operations  Staff  has  taken 
note  of  the  Navy's,  demand  for  priority  in*  the  utilization  of  the 
Russian  harbors  in  the  Baltic  Sea  (see  War  Diary  1  Aug.),  adding 
that  any  orders  necessitated  by  this  measure  must  be  approved  by 
the  Fuehrer  and  will  be  submitted  to  him  in  time. 

Thus,  no  final  decision  has  as  yet  been  passed  on 
.the  matter.  The  Naval  Staff  Quartermaster  Division 
has  been  informed  accordingly. 


-247- 


CONFIDENTIAL 
20  Aug.  19-12 

V.    Merchant  Shipping 

1.  The  Armed  Forces  High  Command  Operations  Staff  has  re- 
vised the  instructions  for  the  Supply  and  Transportation  Office 
of  the  Armed  Forces  Overseas  and  the  directives  for  the  execu- 
tion of  overseas  transports  in  accordance  with  the  present  ex- 
panded tasks.  The  Supply  and  Transportation  Office  of  the  Armed 
Forces  Overseas  is  the  executive  &gency  of  the  Armed  Forces  High 
Command  Operations  Staff  for  all  supply  and  transportation  problems 
of  the  German  Armed  Forces  in  Scandinavia  and  Africa,  as  well  as 
for  overseas  transports  of  the;-Armed  Forces  to  and  from  the  Baltic 
countries  and  across  the  Black  Sea.   i'he  new  directive  entrusts 
this  office  with  handling  transports  of  troops,  men  on  leave,  and 
Armed  Forces  supplies  for  Norway,  Sweden,  Finland,  the  Baltic 
countries,  and  Africa,  as  well  as  across  the  Black  Sea.   Orders 
issued  by  the  Supply  and  Transportation  Office  of  the  Armed  Forces 
Overseas  for  arranging  these  transports  are  binding  for  all  com- 
mands concerned.   Transports  by  naval  ships  or  by  special-purpose 
planes  of  the  Navy  and  the  Air  Force  are  not  subject  to  this 
regulation  unless  they  affect  the  over-all  Armed  Forces  transport 
program. 

None  of  the  Armed  Forces  offices  is  permitted  to  charter  on  its 
own  initiative  any  ships  or  cargo  space  to  or  from  Scandinavia, 
the  Baltic  countries,  and  Africa,  or  across  the  Black  Sea. 

For  a  copy  of  the  Armed  Forces  High  Command  directive  see 
l/Skl  20376/42  G-kdos.  in  files  I  op  IV,  Vol.  1. 

2.  In  its  Foreign  Merchant  Shipping  report  no.  18/42,  the 
Naval  Intelligence  Division,  Foreign  Merchant  Marine  Branch  gives 
an  account  of  the  Sv/edish  merchant  shipping  in  the  present  war  as 
of  1  Jul.  1942.   According  to  this,  the  83  Swedish  ships  totalling 
268,000  GRT  which  are  operating  for  the  enemy  represent  no  more 
than  about  50f0   of  those  which  were  available  to  the  enemy  powers 
at  the  outbreak  of  the  war.   35  vessels  totalling  174,000  GRT  are 
employed  in  the  Goeteborg  traffic,  9  ships  are  used  for  the  ex- 
change of  diplomatic  personnel,  for  repatriation  purposes,  and 
for  Red  Cross  missions,  while  389  vessels  totalling  791,000  GRT 
are  within  the  German-controlled  areas,  including  48,  or  213,000 
GRT,  which  are  laid  up. 

Another  report  deals  with  the  ship  traffic  and  transport  of  ma- 
terial in  the  Persian  Gulf  between  April  ami  June  1942.   Here  the 
traffic  has  increased  by  25?j  as  compared  with  the  first  quarter 
of  1942.   It  is  worth  noting  that  the  British  transport  of 
supplies  to  Russia  via  the  '.Vhite  Sea  is  about  equal  to  that  dir- 
ected via  the  Persian  Gulf. 


VI.   Submarine  Warfare 

1.    Enemy  Situation; 

Reconnaissance  in  the  southern  rendezvous  area  was 
particularly  active  over  the  Bay  of  Biscay  and  off  the  northern 

-248- 


CONFIDENTIAL 
20  Aug.  1942 

coast  of  .  .Spain.   However,  no  submarine  sighting  reports  were 
intercepted  in  this  area.   British  vessels  were  located  some 
1G0  miles  northwest  of  Cape  Vilano  and  southwest  of  Porcupine 
Bank . 

Some  submarine  sighting  reports  have  been  intercepted  from  off 
the  American  east  coast  and  the  West  Indies.   All  U.S.  warships 
were  warned  of  the  danger  zone  in  the  area  west  of  the  Florida 
Strait  between  25°  10'  IT,  24°  36'  II,  82°  10'  W,  and  81°  23'  W 
through  which  they  may  proceed  only' with  the  permission  of  U.S. 
naval  authorities. 

2 .    Own  Situation: 

For  submarine  operations  in  the  Arctic  Ocean  see  Sit- 
uation Arctic  Ocean. 

In  quadrant  BE  8696  outbound  submarine  U  "107"  detected  by  means 
of  her  newly-installed  intercept  apparatus  6  times  in  24  hours 
that  she  was  being  located  by  the  enemy.   Each  time  the  submarine 
escaped  a  possible  attack  by  submerging. 

This  is  one  practical  example  illustrating  the  use- 
fulness of  the  intercept  apparatus. 

No  further  successes  were  scored  during  the  operation  against  the 
convoy  in  quadrant  ED  83.   Submarine  U  "217"  probably  sank  an 
8,000  GRT  tanker  outside  of  Curacao  and  destroyed  a  freight- 
carrying  sailing  vessel  with  gunfire  in  quadrant  ED  75.   2  tankers 
were  located  in  the  harbor  of  Aruba.   Otherwise  the  traffic  was 
light. 

The  submarines  operating  in  the  South  Atlantic  failed  in  their 
search  for  the  convoy  in  quadrants  CF  23  and  CF  31.   The  opera- 
tion was  discontinued. 

Acting  on  the  directive  of  the  Naval  Staff,  the  Commanding  Ad- 
miral, Submarines  has  ordered  submarine  U  "507"  to  abstain  from 
operating  directly  off  the  Brazilian  ports  or  against  the 
Brazilian  coastal  traffic  and  from  carrying  out  any  operations 
within  the  20  mile  zone.   This  directive  of  the  Naval  Staff  was 
issued  at  the  request  of  the  Foreign  Office.   For  details  of  this 
particular  angle  of  the  issue  see  War  Diary,  Part  C,  Vol.  VIII. 

No  noteworthy  reports  were  received  from  the  Mediterranean.   Sub- 
marine U  "83"  v/as  brought  in  successfully.   For  further  details 
see  supplement  to  the  submarine  situation  in  War  Diary,  Part  B, 
Vol.  IV. 


VII .  Aerial  Warfare 


1.   British  Isles  and  Vicinity: 


In  the  course  of  the  large-scale  operation  during  the 
Dieppe  incident  of  19  Aug.   128  enemy  planes  were  definitely  shot 
down  and  26  probably.   Of  this  total,  fighters  brought  down  102 
planes,  bombers  6,  and  anti-aircraft  artillery  20.   For  successes 


-249- 


CONFIDENTIAL 
20  Aug.  1942 

scored  on  ships  see  Situation  './est  Area. 

No  noteworthy  incidents  occurred  during  the  day  of  20  Aug.  In  the 
night  of  20  Aug.  a  small  number  of  planes  were  sent  into  action 
against  Portsmouth.   137  enemy  planes  flew  over  the  German-con- 
trolled territory,  G5  of  which  penetrated  into  the  Reich  area. 
It  is  likely  that  30  of  the  enemy  planes  dropped  mines  in  the 
Baltic  Sea  and  its  entrances.   Some  50  enemy  planes  were  active 
over  the  eastern  area,  concentrating  their  attacks  on  Warsaw.  For 
damage  see  daily  situation  report. 

-2.    Mediterranean  Theater: 

Reconnaissance  activity  was  reported  concentrated  over 
the  western  and  central  Mediterranean. 

3.    Eastern  Front; 

97  enemy  planes  were  reported  shot  down  on  19  Aug.  and 
65  on  20  Aug.   For  results  of  air  reconnaissance  over  the  Kronstadt 
Bay,  Lake  Ladoga,  and  the  Arctic  Ocean  see  Enemy  Situation,  Arctic 
Ocean  and  Baltic  Sea.   1  mine  sweeper  was  sunk  and  another  damaged 
in  attacks  on  war  vessels  in  the  northern  bay  of  Lavansaari. 

136  transport  planes  brought  supplies  for  our  troops  fighting  near 
Demyansk. 


VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation,  Mediterranean: 

The  British  Admiralty  has  published  further  details  con- 
cerning the  operations  carried  out  in  the  Mediterranean  last  week 
with  the  purpose  of  bringing  up  supplies  and  reinforcements  to 
Malta.   The  warship  losses  mentioned  in  the  report  have  already  been 
discussed.   According  to  this  report,  a  total  of, at  least  66  Gernan 
and  Italian  planes  were  supposedly  destroyed.   In  addition  to  2 
Italian  cruisers  damaged  by  torpedo  hits  from  submarines,  it  is 
claimed  that  2  Axis  submarines  and  2  PT  boats  were  definitely  sunk. 

According  to  an  intelligence  report  from  Spain,  at  0200  17  steamers 
passed  through  the  Strait  of  Gibraltar  in  easterly  direction  with- 
out entering  port.   At  0230  the  ARGUS,  the  FURIOUS,  1  battleship  of 
the  NELSON  class,  2  cruisers,  and  several  destroyers  departed  from 
Gibraltar  on  an  unknown  course,  presumably  to  the  west.   On  20  Aug. 
the  following  ships  were  located  in  Gibraltar:   1  ship  of  the 
ILLUSTRIOUS  class,  still  in  dock,  and  2  small  cruisers,  one  of  them 
of  the  FIJI  class,  likewise  still  in  dock.   Photographic  recon- 
naissance showed  the  number  of  ships  in  Malta  reduced  by  1  destroyer 
and  2  patrol  vessels,  which  the  Italian  air  reconnaissance  had  re- 
ported as  3  destroyers  off  La  Galite  on  19  Aug. 


-250- 


CONFIDENTIAL 
20  Aug.  1942 

Air  reconnaissance  off  the  coasts  of  Syria  and  Palestine  failed 

to  yield  any  results. 

2.  Own  Situation,  Mediterranean: 

On  19  Aug.  the  second  of  the  2  Italian  PT  boats  which 
had  run  aground  on  the  Tunisian  coast  was  refloated.   In  the 
night*  of  19  Aug.  enemy  planes  made  a  heavy  attack  on  Tobruk.  Air 
reconnaissance  oyer  the  western  Mediterranean  did  not  yield  any 
results  of  tactical  significance. 

3.  Transport  of  Supplies  to  North  Africat 

According  to  a  directive  of  the  Armed  Forces  High  Com- 
mand Operations  Staff,  the  22nd  Airborne  Division  will  be  re- 
organized and  transferred  to  the  African  Panzer  Army  less  one 
infantry  regiment.   The  transfer  will  presumably  begin  toward 
the  end  of  September.   The  regiment  left  behind  is  to  be  ferried 
to  Crete  as  soon  as  the  transport  situation  permits.  The  regi- 
ment may  be  brought  over  to  Africa  at  some  later  date.  Trans- 
ports carrying  reinforcements  for  the  African  Panzer  Army  retain 
their  priority  over  transports  to  Crete. 

Transport  of  supplies  to  North  Africa  has  been  resumed  on  an  in- 
creased scale.  The  CITTA  DE  ALESSANDRIA  convoy  en  route  from 
Suda  to  Tobruk  entered  Derna  and  left  again.   In  the  morning 
enemy  planes  attacked  the  convoy  of  the  steamer  DORA  north  of 
Cape  Stilo.  No  details  have  as  yet  been  reported.        t 

During  the  month  of  July  a  total  of  45,507  tons,  including  18,301 
tons  of  German  cargo,  were  unloaded  and  20,158  tons,  including 
12,878  tons  of  German  cargo,  were  loaded  in  Benghazi. 

4.  Area  Naval  Group  South! 

Aegean  Seat 

Some  of  the  convoys  were  rerouted  because  of  the  sub- 
marine menace.   Otherwise  the  convoy  operations  proceeded  as 
planned. 

'  Black  Sea; 

Enemy  Situation? 

Only  a  few  convoys  were  observed  moving  along  the  north- 
eastern coast. 

Own  Situation: 

On  19  Aug.  the  3rd  Motor  Mine  Sweeper  Flotilla  sank  2 
of  4  enemy  escort  vessels  encountered  off  Temryuk.  The  2  other 
escort  vessels,  as  well  as  passenger  steamers  which  probably 
carried  troops  and  equipment,  fled  back  to  port.   One  of  the 
vessels  sunk  was  armor-plated.  Group  South  suggests  that  the 
success  be  included  in  the  Armed  Forces  communique. 

In  the  afternoon  4  vessels  of  the  3s  t  PT  Boat  Flotilla  departed 
for  operations  in  the  Tuapse  area. 

-251- 


CONFIDENTIAL 
20  Aug.  1942 

The  transport  of  supplies  from  Taganrog  to  Azov  by  means  of  land- 
ing barges  and  lighters  is  under  way. 

Special  Items; 

(1)  The  Armed  Forces  High  Command  Operations  Staff  has  issued 

a  directive  to  the  Naval  Staff,  the  Commanding  General,  Armed  Forces, 
Southeast,  and  the  General  Armed  Forces  Office,  with  copies  to  the 
Deputy  for  Labor  and  to  the  Foreign  Office,  demanding  that,  the  pro- 
duction of  subchasers  in  the  shipyards  of  Salamis,  Skaramanga,  and 
Piraeus  be  increased  by  all  possible  means  and  that  the  Naval  Staff 
arrange  with  the  Commanding  General,  Armed  Forces,  Southeast  for 
recruiting  German  specialists  as  well  as  Greek  workers  for  this  job. 
The  Greek  shipyard  workers  are  to  be  allotted  ration  C. 

(2)  Group  South  points  out  that  there  will  be  many  excellent 
possibilities  for  maintaining  schools  and  training  courses  in  the 
German-occupied  coastal  area  of  the  Black  Sea  after  the  cessation  of 
military  operations.   Group  South  believes  that  the  Navy  should  act 
soon  to  lay  hands  on  these  facilities.   (See  Telegram  HOC.) 

The  Naval  Staff  Quartermaster  Division  will  attend  to  this  matter. 


IX.   Situation  East  Asia 

The  U.S.  Navy  Department  reports  that  a  U.S.  submarine  sank  a 
Japanese  cruiser  or  destroyer  in  the  western  Aleutians.   According 
to  an  Exchange  Telegraph  report,  a  large  Japanese  convoy  consist- 
ing of  troop  transports  was  located  in  the  vicinity  of  the  Solomon 
Islands, 


X.   Army  Situation' 

1.    Russian  Front: 

Army  Group  A: 

At  the  Ruoff  Army  Group,  Rumanian  cavalry  troops  broke 
through  the  enemy  position  west  of  Kurchanskaya  in  westerly  dir- 
ection.  Part?  of  the  V  Army  Corps  advancing  south  of  the  Kuban 
River  repulsed  enemy  tank  attacks  after  having  seized  Krimskaya 
and  advanced  further  toward  the  west-southwest.   Enemy  rear  guard 
attacks  on  the  advance  elements  of  the  division  advancing  south 
and  southeast  of  Krasnodar  were  repulsed.   The  western  wing  of  the 
XLIX  Mountain  Corps  is  advancing  southward  in  the  3oishaya  Laba 
valley.   Parts  of  the  1st  Mountain  Division  are  engaged  in  combat 
south'  of  the  Klukhor  Pass  in  the  Klydzh  valley.   The  southern  wing 
of  the  1st  Panzer  Army  has  made  a  further  advance.   The  23rd  Panzer 
Division  established  a  bridgehead  over  the  Ovana  River  near  Maisky. 
The  LII  Army  Corps  is  advancing  in  southeasterly  direction  as 
planned. 


-252- 


20  Aug.  1942 

Army  Group  B: 

In  its  eastward  advance,  the  24th  Panzer  Division 
reached  the  southern  border  of  Lake  Tsatsa  and  encountered  a 
strong  enemy  force  while  advancing  toward  Tsatsa   in  northerly 
direction.   The  14th  Panzer  Division  is  engaged  in  a  battle  on 
the  heights  northwest  of  Tsatsa,   The  6th  Army  repulsed  10 
enemy  attacks  on  the  bridgehead  across  the  Don  River  northwest 
of  Stalingrad.   The  enemy"  made  various  attempts  to  cross  the  Don 
River  between  Kremenskaya  and  Verkhnl  Kan on;  in  most  of  the  in- 
stances the  crossing  was  prevented.   Concentrations  of  enemy 
tanks  extending  up  to  30  km.  in  depth  were  observed  east  and  north 
of  Voronezh  and  southeast  of  Yelets. 

Central  Army  Group?  > 

The  battle  for  the  Zhizdra  position  is  extremely  diffi- 
cult due  to  the  presence  of  natural  and  artificial  obstacles.  En- 
emy attacks  against  the  3rd  Panzer  Army,  particularly  at  the 
southeastern  edge  of  the  penetration  east  of  Sychevka  and  north 
of  Rzhev,  continued  unabated. 

Northern  Army  Group: 

The  enemy  also  persisted  in  his  attempts  to  break 
through  the   land  bridge  southeast  of  Staraya  Russa.   His  at- 
tempt to  widen  the  breach  at  the  northeastern  front  of  Demyanok 
failod.   Our  troops  attacked  enemy  assembly  positions  east  of 
the  Volkhov  River  and  south  of  Soltsy. 

2.  Finnish  Front: 

Local  fighting  was  reported. 

3.  .  North  Africa; 

No  noteworthy  reports  have  been  received. 

4.  France ; 

For  an  account  of  the  enemy  landing  at  Dieppe  see 
Situation  West  Area.  For  further  military  details  see  dally 
situation  report. 


^W-iHKKHS^KHHBHKHKKHKHHttHi- •!!-!!■ 


-253- 


CONFIDENTIAL 
31  Aug.    1943 

Items  of  Political  Importance 

great  Britain: 

According  to  foreign  correspondents  reporting  from  London,  the 
news  about  the  landing  at  Dieppe  was  reoeived  rather  calmly  in 
Britain.   It  seems  that  the  people  believe  the  semi-official  state- 
ments about  the  limited  soope  of  the  operation  and  its  alleged 
psychological  effect  on  the  enemy.  Most  neutral  newspapers,  on 
the  other  hand,  are  unable  to  find  any  plausible  explanation  for 
the  purposes  and  object  of  an  undertaking  whioh,  after  all,  entailed 
quite  heavy  losses. 

India; 

The  Moslem  League  has  now  also  come  forward  with  a  statement  dis- 
puting the  claims  of  the  Congress  Party  and  calling  on  the  British 
to  recognize  immediately  and  guarantee  the  Moslems'  right  of  self- 
determination,  and  to  pledge  acceptance  of  the  Pakistan  statute. 
It  is  understandable  that  in  view  of  this  situation  the  Government 
does  not  intend  to  give  in.   This  is  also  why  the  Vioeroy's  reply 
to  Gandhis  letter  in  which  Gandhi  wanted  to  explain  once  again 
his  views  about  the  Congress  Party  resolution  was  cool  and  negative. 

Argentina: 

According  to  the  German  News  Agenoy  (DNB) ,  the  majority  of  the 
Argentine  newspapers  condemn  the  sinking  of  Brazilian  vessels.   It 
is  pointed  out  that  a  change  in  Brazil's  political  situation  with 
relation  to  the  Axis  powers  will  not  fail  to  affect  the  attitude 
of  Argentina. 

Brazil: 

In  view  of  the  sinking  of  5  Brazilian  vessels,  political  circles  in 
Washington  expeot  Brazil  to  enter  the  war  In  the  near  future,  calling 
attention  to  the  fact  that  Brazil's  participation  in  World  War  I 
was  provoked  by  similar  oircumstances.   Brazil's  attitude  is 
similar  to  that  of  the  U.S.A.  before  her  entry  into  the  present 
war,  when  American  planes  were  already  under  orders  to  attack  Axis 
submarines  in  American  waters.   Similarly  Brazilian  planes  partici- 
pated in  the  recent  sinking  of  the  3  German  submarines,  and  a 
report  from  Rio  de  Janeiro  has  just  brought  the  news  that  a  third 
submarine  was  sunk  by  Brazilian  forces  off  Bahia. 

All  German  citizens  have  been  forbidden  to  leave  Brazil  so  that 
they  can  be  held  as  hostages  for  the  35  Brazilians  interned  in 

Corapiegne. 

The  Brazilian  Foreign  Minister  is  trying  to  bring  about  a  joint 
declaration  of  all  American  countries  against  the  ship  sinkings. 

Chile: 

Reuter  reports  that  the  Chilean  Government  has  issued  a  note  to 
the  German  Government,  protesting  against  the  sinking  of  the  5 
Brazilian  ships  and  stating  that  such  an  action  against  a  oountry 
with  which  Chile  maintains  friendly  relations  is  felt  as  directed 
also  against  Chile  herself. 


-254- 


CONFIDENTIAL 
31  Aug.  1943 

Peru: 

The  Peruvian  Foreign  Ministry  has  communicated  to  the  Brazilian 
Government  its  indignation  about  the  submarine  attacks  on  Brazilian 
ships. 


Speoial  Items 

The  Naval  Representative  on  the  Armed  Forces  High  Command  Opera- 
tions Staff  has  transmitted  the  report  of  the  General  of  the 
Engineers  and  Fortifications,  Army  High  Command  on  the  conference 
with  the  Fuehrer  on  13  Aug.  concerning  the  Atlantic  Wall.  The 
report  (l/Skl  I  a  20644/42  Gkdos.)  has  been  placed- at  the  disposal 
of  the  Chief,  Naval  Staff  Quartermaster  Division;  the  Chief  of  the 
Fleet  Branch,  Naval  Staff  Quartermaster  Division;  and  the  Chief, 
Naval  Ordnance  Division.  Another  copy  is  in  War  Diary,  Part  C, 
Vol.  X.   (Compare  the  report  by  the  Deputy  Chief,  Naval  Staff 
Quartermaster  Division  on  this  subject  at  the  Conference  on  the 
Situation  with  the  Chief,  Naval  Staff  on  17  Aug.  in  War  Diary  17 
Aug.) 

On  16  Aug.  the  Armed  Forces  High  Command  Operations  Staff  accord- 
ingly issued  a  directive  for  the  development  of  the  Channel  coast 
and  Atlantic  coast  defenses.   According  to  this  direotive,  every 
effort  and  means  are  to  be  used  to  strengthen  these  ooastal  defenses 
on  the  pattern  of  the  Westwall  to  such  an  extent  that  by  the  spring 
of  1943  any  attack  from  the  air,  sea,  or  land  would  appear  hopeless. 
First  of  all,  the  submarine  bases  and  harbors  with  their  facilities 
for  a  large-scale  enemy  landing  must  be  protected  by  a  compact  belt 
of  defenses  extending  far  enough  in  width  and  depth  to  make  sure 
that  the  submarine  pens  will  not  be  destroyed  or  the  harbors  seized* 

The  Commander  in  Chiefs  'Vest  is  to  submit  immediately  the  final 
plans  for  the  main  line  of  defense  in  the  harbor  areas  and  a  de- 
tailed plan  for  the  construction  of  the  required  15,000  fortifi- 
cations. 

On  21  Aug,  the  Naval  Staff  Quartermaster  Division  issued  directives 
to  the  naval  offioes  concerned. 


Situation  31  Aug.  1943 

I.   War  in  Foreign  Waters: 

1.   Enemy  Situation: 

South  Atlantlo: 

The  radio  decoding  and  intercept  service  intercepted  a 
large  portion  of  an  instruction  of  14  Aug.  issued  by  the  British 
communication  officer  at  Cape  Town  to  ships  en  route  in  either 
direction  between 

(l)  the  British  Isles  and  Africa 


-255- 


CONFIDENTIAL 
31  Aug.  1943 

(3)   and  between  ports  In  South  and  West  Africa,  lnoluding 
ships  whioh  have  withdrawn  from  OS  convoys.   The  ships  are  to 

300  miles  from  the  African  coast  between  Cape 

Town  and  3°  S,  between  the  coast  and  a  line  leading  through  3°  8, 
3°  30'  E;  equator,  1°  W;  3°  30'  S,  7°  30'  W;  equator,  30°  W; 

5°  N.  336  W;  10°  N,  36°  W  .   The  rest  of  the  message  is 

missing.  Evidently,  the  indicated  line,  which  follows  the  coast, 
constitutes  the  boundary  whioh  unescorted  vessels  should  not  cross 
in  the  direction  of  the  sea.  Combined  with  other  course  instruc- 
tions that  have  been  intercepted,  this  leads  to  the  conclusion 
that  merchant  shipping  between  the  Cape  of  Good  Hope  and  the  British 
Isles  via  the  Freetown  route  has  been  rerouted  nearer  the  coast, 
probably  due  to  the  appearance  of  our  auxiliary  cruisers  in  the 
central  area  of  the  South  Atlantic. 

For  the  routing  of  the  ship  traff io  from  the  Cape  of  Good  Hope  to 
North  America  and  vice  versa  see  War  Diary  17  Aug.  Both  routings 
indicate  that  the  oentral  area  of  the  South  Atlantic  is  being 
avoided  and  that  only  fast  convoys  with  strong  escort  pass  through 
this  area  at  the  present  time. 

3.   Own  Situation: 

The  directive  to  the  CHARLOTTE  SCHLIEMANN  concerning  the 
delivery  of  fuel  oil  to  the  auxiliary  oruisers  "38"  and  "33", 
along  with  corresponding  sailing  orders  (see  War  Diary  30  Aug.), 
were  sent  via  Radiogram  0533.   The  Naval  Attache,  Tokyo  reports 
about  the  oordial  reception  of  the  DOGGERBANK  by  the  Japanese 
Navy  in  Batavia,  where  she  stayed  4  days.   Numerous  troop  trans- 
ports loaded  to  oapaoity  arrive  in  Batavia  every  day,  allegedly 
for  the  invasion  of  Australia. 

Information  about  the  enemy  situation  was  sent  out  via  Radiograms 
0333  and  1357.   The  German  Armistice  Commission,  France  transmitted 
the  estimated  positions  of  the  French  steamers  ILE  DE  QUESSANT. 
ILE  DE  NOIRUOUTIER,  ILE  DE  RE,  ALDEBARAN,  and  DUC  D'AUUALE  as  of 
30  Aug.  at  3400  via  Radiogram  1130. 

The  German  Naval  Command,  Italy  announced  that  the  Italian  tankers 
ARCOLA  and  TAIGETE  will  leave  Freetown  for  Curacao  on  21  Aug.  The 
timetable  was  also  given.   (See  Telegram  1640.) 

It  is  rather  strange  that  the  two  tankers  should 
be  foroed  to  oarry  fuel  oil  .for  the  British  for 
the  third  time  as  compensation  for  the  fuel  oil 
allooated  by  the  British  by  agreement  for  the 
Italian  ships  carrying  repatriates  from  East  Africa. 
Unfortunately,  the  Italian  Navy  has  so  far  negleoted 
to  answer  any  of  the  German  inquiries  in  this  con- 
nection. The  matter  should  oertainly  be  investi- 
gated. 


LL Situation  West  Area 

1.    Enemy  Situation; 

Aocording  to  the  report  of  the  Naval  Attaohe  in  Lisbon 


-256- 


CONFIDENTIAL 

IMHMHM      II       I     II    I  ■'!     mu  III  I       ■■"  / 

21  Aug.  1942 

of  18  Aug.,  the  Portuguese  stealer  PESCADORE,  which  left  Vianna 
do  Ca8tello  for  Bilbao  on  11  Aug.,  seems  to  have  been  seized  by 
the  British  together  with  her  entire  cargo  and  brought  Into 
Gibraltar. 

2.   Own  Situation: 

Atlantic  Coast: 

The  Gironde  estuary  has  been  temporarily  closed  to  ship- 
ping because  -it  is  suspected  that  there  are  aerial  mines  in  these 
waters. 

Group  West  informed  the  WESERLAND  via  Radiogram  1021  that  3  mine 
sweepers  of  the  new  type  are  en  route  to  meet  her  at  the  edge  of 
the  Spanish  territorial  waters  and  that  they  will  presumably  be 
at  4°  W  at  1830.  Glose  air  escort  and  fighter  operations  have 
been  ordered  by  the  Air  Commander,  Atlantic  Coast. 

Group  West  has  transmitted' a  report  from  the  UCKERMARK.   From  1600 
on  19  Aug.  to  0300  on  20  Aug.  the  ship  was  shadowed  alternately  by 
Liberator,  Sunderland,  Whitley,  and  Wellington  planes,  and  was 
attacked  with  42  bombs.  Contact  was  maintained  until  0400.   The 
ship  is  leaking  oil  slightly  and  is  slightly  damaged.   3  men  were 
wounded. 

4 

Prom  this  experience  the  Group  Command  concludes  that  only  a  con- 
tinued strong  escort  up  to  at  least  18°  W  will  protect  the  blockade 
runners.  A  telegram  to  this  effect  was  sent  to  the  Naval  Staff, 
with  copies  to  the  3rd  Air  Force  and  the  Air  Commander,  Atlantic 
Coast.   (See  Telegram  1035.) 

Group  West  intends  to  let  torpedo  boat  T  "4",  which  is  not  fully 
ready  for  combat,  participate  in  the  scheduled  operations.  (See 
Telegram  1200.) 

Channel  goast: 

3  vessels  of  the  5th  PT  Boat  Flotilla  have  transferred 
from  Le  Havre  to  Cherbourg. 

Enemy  Landing  at  Dieppe  on  19  Aug. ; 

(l)  According  to  a  report  of  the  "Combined  Headquarters" 
about  the  "Commando  Raid11  at  Dieppe,  strong  military  forces  were 
brought  over  by  warships  and  transports  and  entered  the  waters  off 
the  French  coast  at  the  designated  points  at  0450.   Then,  at  the 
stipulated  time,  they  landed  at  6  points  on  the  shore.   Planes  pro- 
tected the  landings  and  returned  later  to  proteot  the  ships.  The 
objectives  of  the  operation  were: 

a.  To  probe  the  defense  lines  of  the  coast  area  by  launching 
an  attack  on  a  larger  scale  than  any  of  the  previous  ones. 

b.  To  destroy  German  batteries  and  a  radio  station  which 
played  an  important  part  in  the  German  attacks  on  our  oonvoys  in 
the  Channel. 


-257- 


CONFIDENTIAL 
31  Aug.  1943 

o.   To  take  prisoners  in  order  to  obtain  vital  information. 

d.   To  inflict  damage  on  German  troops  and  their  equipment. 
Above  all,  the  attack  was  to  serve  reconnaissance  purposes  es- 
sential to  our  offensive  operations.  In  the  course  of  the  attack 
it  became  clear  that  the  enemy  had  shortly  before  reinforced  his 
troops  and  guns  in  the  region  of  Dieppe.   Despite  fierce  resistance, 
our  commandos  were  able  to  land  on  the  beach  with  several  tanks. 
They  succeeded  in  destroying  3  batteries  and  a  radio  station,  as 
well  as  in  sinking  3  small  vessels  and  taking  a  number  of  prisoners. 
Enemy  troops  suffered  heavy  casualties. 

Our  troops,  consisting  predominantly  of  Canadians,  held  out  on  the 
coast  from  dawn  for  almost  9  hours.   Then  they  were  re-embarked  on 
the  warships  which  had  supported  their  operations  with  gunfire. 
Before  withdrawing,  our  troops  blew  up  and  destroyed  the  tanks 
which  had  landed  and  some  of  which  had  suoceeded  in  breaking  into 
the  town. 

Although  originally  our  Air  Force  units  were  only  assigned  to  sup- 
port the  landing  operations,  one  of  the  greatest  air  battles  of 
this  war  developed  over  this  sector.   The  Germans  were  forced  to 
bring  up  plane  reinforcements  from  all  parts  of  occupied  France, 
from  Holland,  and  from  Belgium.   Our  fliers  engaged  some  of  these 
fore es  even  before  they  were  able  to  reach  the  combat  zone.  Strong 
formations  were  dispersed  over  the  Somme  estuary.  91  German  planes 
were  officially  reported  destroyed  in  combat,  and  approximately 
twice  as  many  were  probably  destroyed  or  damaged.  We  lost  98 
planes  in  these  operations;  30  of  the  pilots  were  rescued. 

All  through  the  battle,  our  fleet  forces  were  exposed  to  furious 
air  attacks  and  heavy  gunfire  from  the  shore.  DesDite  this  fact, 
our  losses  were  light  and  comprised  only  a  number  of  landing  ves- 
sels.  The  destroyer  BERKELEY,  however,  was  so  badly  damaged  that 
she  had  to  be  scuttled.  The  majority  of  the  orew  was  rescued. 
Prior  to  the  landing  operations  we  haopened  to  encounter  the  escort 
vessels  of  an  enemy  convoy.   In  this  encounter  1  armed  German  trans- 
port was  sunk  and  another  set  on  fire.  This  engagement  delayed 
the  landing  of  the  unit  involved  by  30  minutes. 

Due  to  the  heavy  fighting  which  developed  during  the  operation, 
our  casualties  are  high  but  by  no  means  excessive  if  compared  with 
the  scope  and  importance  of  the  operation.   Our  ships  left  the 
coast  only  after  taking  aboard  all  the  troops  who  were  able  to 
return. 

The  -:aval  forces,  whioh  included  a  Polish  destroyer  and  Free 
French  forces,  were  under  the  command  of  Captain  J.  L.  Hallet. 

The  reoort  goes  on  enumerating  the  participating  ground  and  air 
forces. 

Reuter  reports  that  the  troops  returning  from  Dieppe  were  put 
ashore  in  a  south  coast  port  on  the  morning  of  30  Aug.  Most  of 
them  were  wounded,  many  had  some  captured  German  equipment.  They 
brought  with  them  a  number  of  German  prisoners,  including  quite 
a  number  of  officers. 


-250- 


CONFIDENTIAL 


21  Aug.  1942 


(2)   Group  West  reported  the  following  supplementary 
information: 

In  addition  to  the  subohaser  which  was  sunk,  the  coastal  auxiliary 
sailing  vessel  FRANZ  was  also  sunk,  probably  by  gunfire.  The  crew 
took  to  a  lifeboat  and  landed  near  Le  Treport.  As  soon  as  the 
engagement  began,  the  radiotelegraphic  equipment  stopped  function- 
ing on  all  3  escort  vessels,  and  it  was  therefore  impossible  to 
send  off  a  "most  urgent"  (KR)  message.  However,  the  battle  was 
observed  from  the  shore  and,  due  to  this  fact,  the  coast  was  alerted. 
At  0510  the  Naval  Communications  Officer,  Le  Havre  radioed  as  fol- 
lows:  "3  miles  off  Dieppe  surface  forces  attacking  convoy."  Group 
West  informed  Army  Group  D  and  the  3rd  Air  Foroe  by  .telephone  that 
this  was  presumably  one  of  the  usual  attacks  on  our  convoys.  At 
0535  the  3  harbor  patrol  vessels  posted  off  Dieppe  were  attacked. 
Thereupon  the  Naval  Signal  Station  at  Dieppe  fired  a  signal  to  alert 
the  coast.  Later  the  vessels  entered  port  without  having  suffered 
losses.  In  the  night  of  19  Aug.  one  PT  boat  group  combed  the  coastal 
waters  from  Boulogne  westward  and  another  from  Cherbourg  eastward. 
All  they  picked  up  was  one  Polish  pilot.   The  radar  service  failed 
to  produce  any  information  about  the  enemy  forces  prior  to  the  re- 
port about  the  naval  engagement  off  Dieppe.   The  equioment  under 
construction  at  Point  d'Ailly  is  not  yet  ready  for  use.   Following 
the  firing  of  the  alarm  which  warned  the  coast,  the  main  naval 
forces  were  sent  into  action  as  Combat  Group  2  under  the  command 
of  Lt.  Goebel  of  the  Naval  Coastal  Artillery  (killed  in  action). 
Parts  of  the  combat  group  were  enoircled  in  their  defense  positions 
and  trenches  in  front  of  the  fortifications,  and  fought  the  enemy 
tanks  which  had  been  brought  ashore  with  small  arms  and  hand 
grenades.  Another  combat  group  fought  at  the  signal  station.   The 
behavior  of  the  oombat  groups  was  exemplary:   the  men  remained  calm 
and  determined.   The  signal  station  made  an  outstanding  contribu- 
tion to  our  operation  and  to  the  repulsion  of  the  enemy  by  sending 
clear  and  important  messages  which  proved  essential  in  obtaining  a 
clear  picture  of  the  over-all  situation.   Led  by  port  oomraander 
W°.hn,  the  participating  naval  units  set  an  example  in  holding  their 
positions  within  the  closest  range  of  the  enemy  forces  against  far 
superior  forces.   None  of  the  enemy  vessels  succeeded  in  penetrating 
into  the  Dieppe  harbor.  The  harbor  barrages  are  intact.  The  naval 
unite  ashore  lost  28  men  killed,  25  wounded,  and  2  missing. 

For  copy  of  the  detailed  report  see  l/Skl  20638/42  Gkdos.  in  File 
"Enemy  Landing  at  Dieppe  19  Aug.".  Copies  were  sent  simultaneously 
to  the  Fuehrer  Headquarters,  the  Naval  Representative  on  the  Armed 
Foroes  High  Command  Operations  Staff,  the  Naval  Liaison  Officer  to 
the  Commander  in  Chief,  Air  Force,  the  Naval  Liaison  Officer  to 
the  Army  High  Command,  and  to  all  the  higher  Navy  oommands. 

Furthermore,  Group  West  reported  the  following  fact  which  is  es- 
sential to  the  estimate  of  the  enemy  situation  and  of  the  entire 
operation:   The  position  and  course  of  the  26  steamer  oonvoy 
located  off  Portsmouth  which  seemed  to  be  standing  by  with  further 
strong  landing  forces  aboard  corresponded  to  those  of  a  scheduled 
westbound  Channel  convoy  previously  located  by  radio  intelligence 
and  radar  service.  Later,  the  convoy  proceeded  to  Portsmouth. 
Group  West  is  of  the  opinion  that  it  is  still  an  open  question 
whether  there  is  any  connection  between  this  convoy  and  the  landing 
at  Dieppe.  The  Commanding  Admiral,  Submarines  had  ordered  3  out- 
bound submarines  to  head  for  the  western  outlet  of  the  Channel, 


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CONFIDENTIAL 


31  Aug.  1942 


because  it  was  expeoted  that  a  large  enemy  transport  fleet  would 
be  at  sea,  and  a  large-scale  landing  attempt  would  be  made  at  some 
other  point.  The  possibility  of  assigning  further  submarines  in 
the  harbor  was  under  consideration.  However,  the  orders  to  the 
submarines  were  revoked  as  soon  as  it  became  known  that  the  oon- 
voy  was  entering  Portsmouth  and,  approximately  at  the  same  time, 
it  became  apparent  that  the  situation  at  Dieppe  was  under  control. 

(3)   Lt.  Oomdiv  Dr.  Krantz  has  reported  the  results 
obtained  so  far  from  the  questioning  of  enemy  naval  personnel  in- 
volved in  the  landing  attempt  at  Dieppe  on  19  Aug.  by  the  naval 
interrogation  officer  at  headquarters  of  the  302nd  Infantry  Divi- 
sion in  Envermeur.   For  copy  of  the  telegram  see  l/Skl  28568/42  geh. 
in  File  "Enemy  Landing  at  Dieppe  on  19  Aug.  1942". 


III.  North  Sea.  Norway.  Arctic  Ooean 

1.  North  Sea; 

Enemy  Situation: 

No  noteworthy  incidents  occurred. 

Own  Situation; 

In  the  night  of  20  Aug.  enemy  plane6  were  active  over 
the  Dutch  area  and  the  German  Bight.  Aerial  mines  are  assumed  to 
have  been  dropped  in  quadrants  AN  8332  and  8336. 

1  mine  was  swept  by  a  mine  sweeper  off  Borkum.   2  mine-sweeping 
planes  removed  1  mine  off  Borkum  and  1  off  Wangeroog. 

Convoy  operations  proceeded  as  planned. 

2.  Norway.  Arctio  Ocean; 

Enemy  Situation; 

Radio  intelligence  intercepted  a  message  from  an  unidenti- 
fied station  to  the  Arctic  Ocean  Command  stating  that  tanker  no.  14 
is  badly  damaged  and  in  need  of  tug  assistance. 

Own  Situation; 

On  20  Aug.  the  Russian  battery  on  the  Rybachi  Peninsula 
fired  130  rounds  on  our  eastbound  convoy  without  scoring  any  hits. 
Russian  and  British  planes  were  observed  oarrying  out  reconnaissance 
missions  off  the  Arctic  Coast.   Convoy  operations  in  the  area  of 
the  Commanding  Admiral,  Norway  proceeded  according  to  plan. 

The  Commanding  Admiral,  Norway  has  transmitted  a  report  from  the 
Naval  Shore  Commander,  Kirkenes  about  the  progress  of  the  construc- 
tion of  a  cruiser  berth  with  an  anti-torpedo  net  in  the  Kjoe  Fjord. 
According  to  this  report,  the  berth  is  already  available  and  the 
net  is  ready  but  has  not  been  laid  because  the  Air  Force  considers 


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% 


CONFIDENTIAL 
21  Aug.  1942 

it  unnecessary  in  view  of  the  existing  georgraphical  conditions. 
An  alternate  berth  in  Renoe  Sound  is  likewise  ready  for  use»   (See 
Telegram  1530.) 

In  view  of  the  fact  that  the  steamers  GEORG  L.  M.  RUSS  and 
BOLTENHAGEN  were  torpedoed  in  the  KriBtiansand  South-Stavanger 
area,  the  Commanding  Admiral,  Norway  suggests  that  5  single-row 
anti-subnarine  minefields  be  laid  in  order  to  protect  the  convoy 
route  in  that  area.   For  copy  of  the  proposal  see  l/Ski  20636/42 
Gkdos.  in  War  Diary,  Part  C,  Vol.  Ila. 

The  Naval  Staff  has  transmitted  its  final  conclusions  concerning 
convoy  PQ  18  to  the  Naval  Representative  on  the  Armed  Forces  High 
Command  Operations  Staff,  the  Naval  Representative  on  the  Air 
Force  Operations  Staff,  and  the  Naval  Liaison  Officer  at  the  Army  ■ 
High  Command,  with  copy  to  Group  North.   For  copy  of  the  telegram 
see  l/Skl  I  op  20564/42  Gkdos.  in  File  "Elspalaet". 

The  Naval  Staff  has  approved  Group  North's  plan  to  have  the 
"Knospe"  expedition  brought  in  by  a  submarine  stationed  in  the 
Spitsbergen  area  or,  if  ice  conditions  make  this  impossible,  to 
assign  the  weather  ship  COBURG  to  this  mission.   The  Naval  Staff 
directs  Group  North  to  have  the  COBURG  lay  the  automatic  weather 
reporting  gear  regardless,  of  whether  the  "Knospe"  exoedition  can 
be  brought  in  by  a  submarine  or  not.   (See  Telegram  1717.) 

In  connection  with  operation  "Sunderland" .  the  Navel  Staff  has 
received  a  new  version  of  the  operations  order  by  the  Admiral, 
Arctic  Ocean,  containing  the  following  changes  in  the  previous 
order  issued  only  in  the  form  of  a  telegram  (see  War  Diary,  15 
Aug.) : 

The  task  is  to  attack  ship  traffic  in  the  Kara  Sea.   The  main 
objectives  of  the  attacks  are  convoys,  preferably  those  coming 
from  the  east. 

Participating  forces;  the  SCHEER  and  presumably  2  submarines  in 
the  Kara  Sea.  Operations  by  other  submarines,  loosely  connected 
with  operation  "Wonderland" ,  are  planned  off  the  Matochkin  Shar, 
the  Kara  Strait,  and  the  Yugor  Strait. 

Strategic  command:  Admiral,  Arctic  Ocean. 

Taotioal  command I   the  captain  of  the  SCHEER.   The  submarines  will 
be  under  the  exclusive  oommand  of  the  Admiral,  Arctic  Ocean.   The 
jump-off  base  will  be  in  the  Narvik  area. 

The  surprise  factor  is  deoieive  for  the  success  of  the  operation. 
Strictest  radio  silence  should  be  maintained  and  the  ship  must 
keep  out  of  sight.   Whether  and  to  what  extent  the  task  can  be 
carried  out  will  depend  on  the  situation  and  will  be  determined 
by  the  commander.   No  inflexible  orders  are  being  issued,  with 
the  single  exception  that  only  justifiable  risks  should  be  taken, 
(Same  restrictions  as  for  operation  "Roes s el sprung". )  As  soon 
as  she  is  notioed  by  the  enemy,  the  ship  must  turn  away. 

For  execution- and  details  see  operations  order  in  l/Skl  1629/42 
Gkdos.  Chefs,  in  File  "Wonderland". 


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CONFIDENTIAL 
21  Aug.  1942 

Situation  concerning  operation  "Wunderland"  ae  of  21  Aug. 

No  report  has  been  received  from  the  cruleer  80HEER. 
Submarine  U  "453"  entered  the  Ice  Fjord  according  to  orders  and 
found  all  the  coal  mines  in  that  area  as  well  as  the  radio  towers 
in  the  Groen  Fjord  destroyed.   The  submarine  destroyed  the  Linne 
radio  station  by  gunfire.   She  considers  it  unlikely  that  any 
merohant  or  passenger  steamers  would  approach  the  Ice  Fjord. 

Submarine  U  "589"  departed  on  her  mission  off  the  Matochkin  8har. 
She  is  to  meet  submarine  U  "456". 

Submarine  U  "251"  is  operating  together  with  the  SCHEER.   She 
sighted  a  PT  boat  type  subchaser  at  the  fog  boundary  in  quadrant 
AF  9783. 


IV.   Skagerrak,  Baltio  Sea  Entrances.  Baltio  Sea 

1.  Enemy  Situation; 

No  noteworthy  reports  have  been  received. 

2.  Own  Situation: 

* 

The  routes  In  the  entrances  and  the  western  part  of  the 
Baltio  Sea  were  temporarily  dosed  because  of  the  possible  presence 
of  aerial  mines  in  these  waters.   4  of  the  enemy  planes  which 
penetrated  into  the  Reich  on  the  night  of  20  Aug.  were  shot  down 
by  naval  anti-aircraft  artillery  in  the  area  of  Eckernfoerde  and 
the  Kiel  Bay.   The  incursions  reached  as  far  as  the  East  Prussian 
coast.   A  total  of  6  British  aerial  mines  were  salvaged  in  the 
Ploener  See  and  off  Bordesholm,  as  well  as  in  the  vicinity  of 
Aarhus.   Shipping  on  the  lakes  has  been  banned.   1  British  aerial 
mine  probably  exploded  in  the  Strande  Bay. 

The  German  motor  ship  HINRICH  (90  GRT)  sank  with  her  entire  crew 
in  the  Little  Belt  as  a  result  of  a  mine  hit. 

In  order  to  counteract  as  far  as  possible  the  paralyzing  effeot  of 
the  frequent  closing  of  the  routes  east  of  Swinemuende  on  merohant 
shipping,  the  Naval  Station,  Baltic  Sea  suggested  that  24  lighters 
or  luggers  from  Holland  or  Hamburg  be  recruited  to  help  speed  up 
the  clearing  of  the  mined  routes.   The  Naval  Staff  Quartermaster 
Division  will  take  care  of  the  matter. 

The  LUETZOW  reported  that  she  is  not  ready  for  operations  due  to 
shipyard  repairs. 

In  the  Gulf  of  Finland,  a  motor  boat  of  the  Coastal  Patrol  Flotilla 
Russia  went  down  In  flames  caused  by  a  misfire.   Fog  prevented  the 
laying  of  minefield  "Seehund  II".  Mine-sweeping  and  convoy  opera- 
tions in  the  area  of  the  Commander,  Mine  Sweepers,  Baltic  Sea  pro- 
ceeded according  to  plan  without  incidents. 

Referring  to  the  impending  operation  "Nordlicht",  Group  North  re- 
newed its  request  for  authorization  of  the  transfer  of  at  least 
several  vessels  of  the  6th  PT  Boat  Flotilla  to  the  Gulf  of  Finland. 
The  Naval  Staff  refused  the  request  because  the  extremely  oritioal 
situation  in  the  west  area  requires  the  services  of  the  flotilla 

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CONFIDENTIAL 


31  Aug.  1942 


there.  ' The  Naval  Staff  does  not  oonaider  it  very  likely  that  the 
Russian  fleet  in  the  Baltic  Sea  will  try  to  break  out  when  opera- 
tion "Nordlioht"  gets  under  way.   On  the  contrary,  previous  ex- 
perience leads  the  Naval  Staff  to  believe  that  the  Russians  will 
use  the  arms  and  crews  from  their  ships  to  support  the  fighting 
on  land.   For  this  reason,  the  Naval  Staff  does  not  consider  it 
justified  to  withdraw  any  of  the  foroes  so  badly  needed  in  the 
west  area  for  an  assignment  where  they  may  not  be  needed  and  pre- 
fers to  risk  the  disadvantage  of  having  to  send  some  of  the  foroes 
later  for  brief  operations  against  a  Russian  breakthrough  attempt. 


]L MfirnhaTTh    Shipping 

In  its  Brief  Report  No.  26/42,  the  Naval  Intelligence  Divi- 
sion, Foreign  Merchant  Marine  Branch  supplies  information  on  ore 
shipping  in  Lulea,  ship  traffic  in  the  Strait  of  Gibraltar  and  the 
number  of  ships  in  the  harbor,  the  arming  of  U.S.  merchant  vessels, 
the  building  of  wooden  ships  in  the  U.S.A.  ,  etc. 


VI.   Submarine  Warfare 

1 •   Enemy  Situation;  , 

Messages  indicating  lively  reconnaissance  activity  in 
the  northern  rendezvous  area  and  around  Iceland  were  intercepted, 
one  of  them  from  a  plane  reporting  a  depth  charge  attack  on  a  sub- 
marine 225  miles  southeast  of  Reykjavik. 

Submarine  sighting  reports  were  intercepted  from  the  St.  Lawrence 
River,  where  there  are  no  German  submarines,  northeast  of  Long 
Island,  in  the  Cape  Hatteras  area,  in  the  Florida  Strait,  and  in 
the  Windward  Passage.  A  message  from  Freetown  reported  a  submarine 
at  38°  50«  S,  48°  53«  W. 

2.    Own  Situation; 

For  submarine  operations  in  the  Arctic  Ocean  see  Situa- 
tion Arctic  Ocean. 

The  NORTHUMBERLAND  sunk  by  submarine  U  "510"  (see  War  Diary  19 
Aug.)  was  the  11,558  GRT  tanker  of  this  name.   This  means  an  ad- 
ditional 10,300  GRT  to  this  submarine's  or edit.   No  further  suc- 
cesses were  reported  today.   For  other  reports  see  supplement  to 
the  submarine  situation  in  War  Diary,  Part  B,  Vol.  IV. 

T.ie  Commanding  Admiral,  Submarines  reported  that  an  attack  by 
enemy  planes  broke  up  the  successful  operation  of  the  submarine 
group  "Blueoher"  as  soon  as  the  convoy  came  within  the  range  of  the 
planes.   4  of  the  7  submarines  participating  in  the  operation  were 
damaged  by  bombs,  1  of  them  heavily.   Inoreased  enemy  air  activity 
over  the  Nv/rth  Atlantic  extending  as  far  as  25°  W,  together  with 


-263- 


CONFIDENTIAL 
21  Aug.  1942 

the  enemy's  excellent  location  system,  i»o.,e  made  submarine  warfare 
extremely  difficult,  with  the  result  that  even  if  the  strength  of 
the  enemy  air  forces  remains  at  its  present  level,  the  number  of 
our  submarine  successes  is  bound  to  decrease  considerably,  while 
our  losses  will  be  heavy.   This  will  reduce  the  chances  of  our  sub- 
marine offensive.   In  order  to  keep  up  these  successes,  the  Com- 
manding Admiral,  Submarines  once  again  requests  the  immediate. as- 
signment of  the  most  suitable  planes  to  the  Bay  of  Biscay  and  the 
eastern  Atlantic;  as  far  as  range  and  fighting  power  are  concerned, 
only  He  177' s  would  be  suited  for  the  task.   (See  Telegram  2040.) 

The  Chief,  Naval  8taff  will  personally  inform  the 
Fuehrer  about  this  situation  when  delivering  hie 
report  on  26  Aug.   The  Naval  Staff  is  keeping  the 
Air  Force  Operations  8taff  informed  on  the  matter. 

In  view  of  the  fact  that  the  blockade  runners  have  re-entered  port, 
the  Naval  Staff  authorizes  submarines  to  attack  enemy  ships  on 
route  "Anton"  north  of  20°  N  beginning  at  0000  on  22  Aug.  until 
further  notice.   A  directive  to  this  effect  was  sent  to  the  Com- 
manding Admiral,  Submarines  and  Group  West  via  Telegram  1718. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

During  the  day  our  planes  flew  reconnaissance  missions 
and  carried  out  a  fighter-bomber  attack  on  Hythe.     No  missions  were 
flown  at  night. 

2.  Mediterranean  Theater; 

Reconnaissance  over  the  western  Mediterranean  failed  to 
yield  any  results. 

In  the  vicinity  of  Corfu,  a  German  escort  plane  scored  a  bomb  hit 
on  an  enemy  submarine  operating  against  an  Italian  tanker  whioh 
had  been  torpedoed  by  a  plane.   The  submarine  sank  after  a  heavy 
explosion.   A  destroyer  escorting  a  convoy  shot  down  2  planes. 
During  the  photographic  reconnaissanoe  of  Haifa,  Suez,  etc.,  very 
strong  anti-aircraft  fire  was  observed  reaching  an  altitude  of 
11,500  meters, and  a  Spitfire  was  seen  flying  at  an  altitude  of 
12,000  meters. 

3.  Eastern  Front; 

Reoonnaissance  planes  were  active  over  the  Black  Sea, 
the  Volga  River,  and  the  Arotic  Ocean.   The  Murraashi  airfield  was 
raided  with  observed  effect.   14  enemy  planes  were  shot  down.   1 
300-ton  steamer  was  sunk  in  Eina  Bay. 


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CONFIDENTIAL 
31  Aug.  1942 

VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation.  Mediterranean: 

No  further  reports  have  been  reoeived  about  the  foroe 
which  departed  from  Gibraltar  in  the  night  of  19  Aug.   The  German 
Naval  Command,  Italy  does  not  think  that  a  new  British  operation 
is  in  progress  at  present.  At  noon  an  Italian  plane  sighted  1 
destroyer  and  3  torpedo  boats  on  a  northeasterly  course  off  the 
northwest  coast  of  Mallorca.  According  to  an  intelligence  report 
from  Spain,  a  force  consisting  of  8  vessels  and  a  large  ship  look- 
ing like  an  escort  vessel  were  sighted  on  an  easterly  course  off ( 
Cape  de  Gata  on  the  night  of  30  Aug.  However,  visibility  was  poor. 

Submarines  were  reported  sighted  off  Capri,  in  the  Strait  of 
Otranto,  off  Corfu,  and  off  the  northwestern  tip  of  Crete.  The 
ships  in  Valletta  had  been  increased  by  2  submarines.   No  reports 
have  been  received  about  the  eastern  Mediterranean. 

3.   Own  Situation.  Mediterranean: 

The  German  Armistice  Commission,  France  reports  that  the 
Frenoh  have  alerted  Marseille  and  Toulon  beoause  of  the  departure 
of  the  British  fleet  from  Gibraltar  reported  the  day  before.   The 
increased  readiness  ordered  for  the  3rd  PT  Boat  Flotilla  in  Suda 
was  cancelled. 

In  the  night  of  30  Aug.  enemy  planes  unsuccessfully  attacked  the 
convoy  of  the  steamer  DORA  and  the  tanker  POZARICA  off  Cape  Stilo.- 
Our  escort  planes  shot  down  6  of  the  attackers.  During  renewed 
air  attacks  at  1630  on  21  Aug.  directly  south  of  Corfu  an  aerial 
torpedo  hit  the  tanker  POZARICA.  The  ship  is  being  towed  into 
Corfu.  One  of  our  planes  is  reported  to  have  sunk  an  enemy  sub- 
marine on  that  occasion. 

3.  Transport  of  Supplies  to  North  Africa: 

During  the  day  enemy  planes  repeatedly  attacked  the  con- 
voy of  the  SPORTIVO  en  route  from  Tobruk  to  Suda  without  scoring 
a  hit.   Transport  of  supplies  from  Italy  and  Greece  to  North  Afrioa 
and  along  the  North  African  coast  proceeded  according  to  plan. 

On  19  Aug.  770  tons  were  unloaded  in  Tobruk. 

1  landing  barge  burned  up  during  the  bomber  raid  in  the  night  of 
19  Aug. 

4.  Area  Naval  Group  South: 
Aegean  Sea: 

No  noteworthy  incidents  occurred. 

Black  Sea: 

Enemy  Situation! 

Air  reconnaiseanoe  reported  that  3  steamers  and  15  boats 
were  in  Novorossisk  early  in  the  morning.  3  small  warships  entered 


-265- 


CONFIDENTIAL 


31  Aug.  1942 


and  1  PT  boat  left  the  port.   On  the  Volga  River  1  tanker  and  17 
towe  were  observed  sailing  up  the  river,  while  9  tows  were  moving 
downstream. 

Own  Situation: 

On  the  evening  of  20  Aug.  4  Italian  subchasers  departed 
from  Feodosiya  in  order  to  feint  a  landing  on  the  southern  coast 
of  the  Taman  Peninsula. 

In  the  night  of  20  Aug.  the  1st  PT  Boat  Flotilla  failed  to  en- 
counter any  ships  moving  south  of  Tuapse.   The  PT  boats  re-entered 
Ivanbaba  after  an  exchange  of  fire  with  2  Russian  flying  boats. 

It  was  oonfirmed  that  the  harbor  of  Akhtari  oan  not  be  considered 
for  the  transport  of  supplies  by  sea  even  if  small  vessels  are 
used. 

Special  Items: 

(1)  In  order  to  carry  out  the  convoy  and  transport 
operations  in  the  Caspian  8ea,  Group  South  suggests  that  in  ad- 
dition to  the  transfer  of  Italian  subchasers  and  submarines,  as 
well  as-  of  20  motor  boats  from  the  Sea  of  Azov,  scheduled  for  the 
first  half  of  the  ooming  winter,  at  least  20  landing  barges  be 
built  right  in  the  Caspian  Sea  area.  Moreover,  the  number  of  the 
Siebel  ferries  which  the  Army  is  supposed  to  hand  over  to  the  Navy 
should  be  increased  to  20,  and  the  new  ferries  should  likewise  be 
built  on  the  spot,  if  the  engine  problem  oan  be  solved.   Further- 
more, the  Group  proposes  that  a  naval  supply  depot  in  Makhach  Kala 
be  established  to  meet  any  eventuality.   (See  Telegram  1200.) 

The  Naval  Staff  Quartermaster  Division  will  take  up  the  matter. 

(2)  In  view  of  the  shortage  of  available  naval  vessels, 
Group  8outh  again  asked  for  authorization  to  keep  2  of  the  stipu- 
lated 4  reserve  boats  of  the  1st  PT  Boat  Flotilla  on  permanent 
duty  and  for  assignment  of  the  additional  crews  required  for  man- 
ning these  2  PT  boats.   (See  Telegram  1800.) 


IX.   Situation  East  Asia 

No  noteworthy  reports  have  been  reoeived. 


1*. 


Armv  Situation 

1.   Rub b i an  Front: 

Army  Group  A: 

Enemy  resistance  against  the  Army  Group  units  whioh  are 
advancing  according  to  plan  has  on  the  whole  stiffened,  and  the 
speed  of  our  advance  has  been  slowed  down. 


-266- 


CONFIDENTIAL 
21  Aug.    1943 

Army  Group  B: 

The  right  wing  of  Army  Group  B  is  slowly  pressing  from 
the  south  and  southeast  against  the  area  south  of  Stalingrad  in 
the  face  of  strong  enemy  resistance.  The  northern  pincers  pushed 
ahead  toward  the  southeast  as  far  as  Poskovatka.  On  the  other 
sectors  of  the  front  our  troops  repulsed  all  enemy  attempts  to 
cross  the  Don  River.   The  situation  on  the  sector  of  an  Italian 
division  at  the  point  where  the  Khoper  River  flows  into  the  Don 
is  unclarified. 

Central  Army  Group: 

Fighting  continues  in  the  area  south  of  Sukhinichi.  Our 
troops  broke  through  the  western  wing  of  the  enemy  forces  on  the 
Zhizdra  River.   East  of  Rzhev,  the  enemy  is  pressing  hard  against 
our  forces,  some  of  which  had  to  be  withdrawn  behind  the  Volga 
River.   Otherwise  all  enemy  attacks  were  repulsed. 

Northern  Army  Group: 

All  attacks  against  the  land  bridge  to  the  II  Army  Corps 
were  beaten  off.   Elsewhere  the  enemy  made  some  local  advances 
which  are  of  no  special  significance. 

2.  Finnish  Front: 

No  noteworthy  Incidents  occurred. 

4 

3.  North  Africa: 

German  and  Italian  engineers  laid  144,000  mines  in  the 
Alamein  position. 


-267- 


CONFIDENTIAL 
22  Aug.  1942 

Items  of  Political  Importance 

The  Moscow  conferences  continue  to  be  discussed  at  great  length  in  the 
international  press.  Among  the  numerous  conjectures,  th£  one  offered 
by  a  Swedish  paper  comes  nearest  the  truth  in  concluding-: that  Churchill 
could  have  spared  himself  the  trip  if  the  Allies  were  determined  to 
open  the  second  front  now.   If,  on  the  other  hand,  Churchill  succeeded 
in  strengthening  Russia's  determination  to  resist  despite  the  absence 
of  a  second  front,  as  all  the  signs  indicate,  then  his  trip  was  of 
greatest  value  for  the  Allied  cause.   It  is  frequently  pointed  out  that 
the  mere  fact  that  Churchill,  who  is  now  seventy,  went  to  Moscow  clear- 
ly demonstrates  the  extreme  seriousness  of  the  situation. 

Concerning  the  shipping  problem, 

Lord  Winston  declared  in  a  speech  that  Britain's  ship  tonnage  situa- 
tion is  disastrous.   Not  before  the  British  regain  their  naval  suprem- 
acy, will  the  land  warfare  produce  any  noteworthy  successes.   Unless 
they  are  able  to  do  so,  they  will  continue  to  suffer  one  defeat  after 
another. 

Iran: 


The  Transocean  News  Agency  reports  that  for  the  first  time  U.S.  troops, 
which  landed  in  Basra,  were  garrisoned  on  Iranian  territory.   According 
to  the  same  source,  the  Russian  Government  attempted  to  negotiate  the 
transfer  of  Iranian  vessels  stationed  in  the  Caspian  Sea  to  Russian 
ownership. 

Brazil; 

According  to  a  press  report  from  Rio  de  Janeiro,  Brazil  is  apparently 
beginning  to  prepare  for  active  participation  in  the  war. 


Special  Items; 

The  Naval  Staff  had  asked  the  Naval  Ordnance  Division,  War  Economy 
Branch  to  find  out  whether  Ukrainian  ore  could  under  the  present 
circumstances  be  used  to  offset  any  interruptions  in  Swedish  ore  im- 
ports.  On  the  basis  of  information  received  from, the  Minister  for  the 
Occupied  EastemTerritories,  the  Eastern  Mining  Corporation  (Berg-und 
Huettenwerksgesellschaft  Ost  m.  b.  H. )  and  the  Armed  Forces  High  Com- 
mand, War  Economy  Division,  Foreign  Economics  Branch,  the  Naval  Ord- 
nance Division,  War  Economy  Branch  stated  that  it  will  be  absolutely 
impossible  to  dispense  with  the  Swedish  ore  shipments  within  the 
foreseeable  future. 


Situation  22  Aug;.  19  42 
I.   War  in  Foreign  Waters 
1.   Enemy  Situation; 

North  Atlantic: 

The  convoy  heading  for  the  British  Isles  which  was  sighted 

-268- 


CONFIDENTIAL 
22  Aug.  1942 

off  the  Portuguese  coast  on  11  Aug.  was  escorted  by  1  ship  of  the 
ILLUSTRIOUS  class,  1  heavy  cruiser,  and  1  light  cruiser.   0h;30 
and  31  Jul.  a  large  convoy  arrived  from  the  U.S.A.  in  Northern  Ire- 
land. According  to  an  agent  report,  -there  are  at  present  no  U.S. 
battleships  in  Europe.   However,  a  U.S.  naval  officer  said  that  the 
NEVADA  will  arrive  in  the  British  Isles  with  the  next  troop  con- 
voy.  One  particularly  large  convoy  was  expected  to  depart  from 
Sierra  Leone  to  England  between  18  and  20  Aug. 

The  Consulate  in  Lourenco  Marques  reports  that  during  the  last  few 
days  2  convoys  .carrying  troop3  and  planes  for  Australia  passed  >* 
through  Cape  Town.   On  8  Aug.  a  U.S.  convoy  of  6  ships  carrying 
planes  for* Egypt  passed  through  Lourenco  Marques.   Japanese  sub- 
marines recently  sank  1  Greek  and  2  British  steamers  in  the  Mozam- 
bique Strait. 

i 

2.    Own  Situation: 

The  steamer  DRESDEN  departed  from  Yokohama  to  Saigon  where 
she  will  take  on  cargo  for  Europe. 

All  vessels  in  foreign  waters  were  notified  via  Radiogram  2022  that, 
starting  immediately,  submarines  arg  permitted  to  fire  on  unescorted 
and  unaccompanied  vessels  between  0  and  10  S  west  of  20°  W.  Upon 
inquiry,  the  Naval  Attache  in  Tokyo  is  being  informed  that  the 
mines  and  torpedoes  left  on  the  DOGGERBANK,  which  are  to  be  brought 
back  to  Europe  when  the  ship  returns,  may  be  shown  to  the  Japanese 
Navy.   (See  Telegram  0330.)  ' 


II.   Situation  West  Area 

1 .  Enemy  Situation : 

Air  reconnaissance  reported  40  to  50  landing  boats  and  1 
British  warship  off  Selcombe.  At«noon  20  steamers  and  1  destr6yer 
were  sighted  on  an  easterly  course  east  of  Start  Point. 

2.  Own  Situation; 

Atlantic  Coast; 

While  sweeping  a  mine  off  St.  Nazaire,  the  mine-de'tonating 
vessel   "137"  was  badly  damaged. 

The  blockade -runner  YJESERLAND  returned  without  an  incident  and 
anchored  at  Bordeaux. 

Channel  Coastr 

On  21  Aug.  1  three-engine  tank'  landing  craft  and  2  two- 
engine  Infantry  landing  craft  were  salvaged  and  towed  into  Dieppe. 

-26p- 


CONFIDENTIAL 
22  Aug.    1942 

In  the  night   of  20  Aug.   naval  anti-aircraft  guns   shot  down  a   four- 
engine   enemy  plane. 


III.  North  Sea.  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation; 

Air  reconnaissance  reported  the  usual  convoy  movements 
along  the  southeastern  and  eastern  coasts.   There  was  little  recon- 
naissance activity  over  the  entire  North  Sea  area. 

Own  Situation: 

Mine-sweeping  planes  and  motor  mine  sweepers  removed  a 
total  of  5  ground  mines  off  Borkum,  2  off  Terschelling,  2  off 
Schiermonnikoog,  and  2  off  the  Elbe  estuary.   Mine  operation  "Eleanor" 
was  carried  out  according  to  plan.   Operation  "Fuenfte  Kolonne" 
is  scheduled  for  23  Aug. 

In  the  area  of  the  Coastal  Defense  Commander,  German  Bight  enemy 
balloons  appeared  for  the  first  time  which  dropped  phosphorus-filled 
rubber  cylinders. 

2.  Norway.  Arctic  Ocean; 

Enemy  Situation: 

According  to  radio  decoding  of  the  British  Admiralty  re- 
port of  31  May,  out  of  the  34  ships  constituting  the  PQ  convoy,  7 
or  a  total  of  43,205  GRT,  were  sunk,  6  of  them  by  planes  and  1  by  a 
submarine  • .. 

The  last  convoy  attacked  prior  to  that  date  was  the 
PQ  16.  The  successes  reported  by , our  Air  Force  far 
exceeded  this  total.  (See  War  Diary  26  May  and  the 
following  days.)  On  the  other  hand,  the  successes 
scored  by  our  forces  against  convoy  F0.  15  coincide 
more  or  less  with  these  Admiralty  figures.  (See  War 
Diary  4  May.) 

According  to  an  intelligence  report  from  Iceland  of  15  Aug.,  a  convoy 
consisting  of  11  to  12  loaded  and  armed  ships  arrived  in  Reykjavik 
on  14  Aug.   U.S.  soldiers  are  frequently  used  as  stevedores,  replac- 
ing the  Icelandic  workers  who  are  on  strike.  Air  reconnaissance  lo- 
cated a  northbound  convoy  consisting  of  24  ships  in  the  Aberdeen 
area.  About  10  coastal  vessels  were  proceeding  on  a  westerly  course 
in  the  Motovski  Bay  between  the  Litsa  and  Ura  Bays.   Pack-ice  was 
spotted  in  the  Horn  Sound,  while  the  Bell  Sound  and  the  Ice  Fjord 
were  free  of  ice,  and  isolated  drift-ice  fields  were  observed  off 
the  west  coast  of  Spitsbergen. 


-270- 


CONFIDENTIAL 
22  Aug.  1942 

Own  Situation; 

On  21  Aug.  at  noon  2  Russian  planes  strafed  and  unsuccess- 
fully tried  to  torpedo  subchaser  "1103"  off  Svaerholt.   No  other  in- 
cidents were  reported  from  the  area  of  the  Conmanding  Admiral,  Nor- 
way. 

The  Admiral,  Arctic  Ocean  reports  that  operation  "Wunderland"  is  pro- 
ceeding according  to  plan,   bn  18  Aug.  at  0130  the  cruiser  SCHEER 
eluded  an  unaccompanied  ship  at  77°  N,  35°  E.   It  is  not  known  whether 
the  message  to  this  effect  was  issued  by  the  SCHEER  or  by  a  sub- 
marine.  The  short  signal  also  failed  to  make  clear  whether  the  ship 
noticed  the  SCHEER  or  not.   Group  North  remarks  that  the  message  was 
issued  very  late,  but  it  does  not  expect  any  adverse  effect  on  the 
execution  of  the  operation. 

Acting  on  the  request  of  the  Admiral,  Arctic  Ocean,  Group  North  has 
given  permission  for  mine  operations  "Peter"  and  "Paul"  to  be  carried 
out. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1«   Enemy  Situation: 

During  the  afternoon  3  destroyers  were  located  in  the  Kron- 
stadt  roadstead. 

4 

Small  auxiliary  vessels  were  observed  moving  within  the  island  area 
In  the  eastern  part  of  the  Gulf  of  Finland. 

2.    Own  Situation;  , 

No  incidents  of  importance  occurred  in  the  area  of  the 
Commanding  Admiral,  Defenses,  Baltic  Sea.  According  to  a  report  of 
the  Naval  Attache  in  Stockholm,  the  Swedish  Government  has  announced 
that  a  certain  area  has  been  mined  and  issued  a  warning  to  the  ships. 
For  details  see  Telegram  1817. 

Following  an  encounter  with  7  enemy  patrol  vessels  and  2  ??   boats, 
operation  "Seehund  II"  in  the  area  of  the  Commander,  Mine  Sweepers, 
Baltic  Sea  had  to  be  broken  off. 

On  21  and  22  Aug.  enemy  dive  bombers  attacked  our  subchaser  groups 
west  of  the  "Seeigel"  minefield.   2  of  the  boats  suffered  casualties. 

Mine-sweeping  and  convoy  operations  proceeded  according  to  plan  with- 
out incidents. 


V.   Submarine  Warfare 

1.   Enemy  Situation; 

According  to  an  intelligence  report  from  England,  a  reliable 
agent  maintains  that  repeated  or  continued  submarine  attacks  on  con- 
voys proceeding  to  England  via  the  Atlantic  Ocean  will  immediately  re- 
sult in  further  precautionary  cuts  in  the  British  food  rations  and  a 

-271- 


CONFIDENTIAL 
22  Aug.  1942 

shortage  of  raw  materials  which  will  lead,  in  turn,  to  a  drop  in 
production.   Shipping  circles  are  very  much  concerned  about  the  re- 
cent submarine  attacks  on  England-bound  ships  in  the  Atlantic  Ocean, 
since  these  attacks  make  it  difficult  or  even  impossible  to  pull 
out  a  considerable  number  of  medium  and  small-sized  ships  and  to 
keep  them  ready  in  the  southern  ports  of  England,  for  which  pre- 
liminary arrangements  were  already  made.   This  reserve,  which  is  in 
fact  an  assembly  of  transports  for  the  second  front,  will  have  to 
be  broken  up  if  the  attacks  in  the  North  Atlantic  continue. 

2.  Own  Situation: 

Submarine  U  "354"  has  been  sent  to  bring  in  the  weather 
expedition  "Knospe"  from  Cross  Bay. 

In  the  North  Atlantic,  submarine  U  "135"  of  the  "Loss"  group  located 
a  westbound  convoy  in  quadrant  AK  9693.   All  boats  "of  the  group 
were  sent  into  action  against  the  convoy. 

The  "Kirschbluete"  left  Lorient  on  22  Aug.   No  successes  have  been 
reported  from  the  submarine  operations  areas.   In  the  Mediterranean, 
submarine  U  "565"  was  forced  to  turn  back  because  of  heavy  bomb 
damage . 

For  further  details  see  supplement  to  the  submarine  situation  in  War 
Diary  Part  B,  Vol.  IV. 

3.  Special  Items; 

(1)  The  Naval  Staff  has  released  until  further  notice  the 
area  between  0°  and  10°  S  extending  in  westerly  direction  as  far  as 
the  coast  for  submarine  operations.   The  eastern  boundary  lies,  as 
before,  at  20o  W. 

(2)  The  declaration  of  war  by  Brazil  has  had  an  extremely 
unfavorable  effect  on  Chile  and  Argentina.   It  is  therefore  quite 
possible  that  these  countries  v/ill  be  forced  to  break  off  their  re- 
lations v/ith  or  to  declare  war  on  Germany.   For  this  reason,  the  Com- 
manding Admiral,  Submarines  has  been  directed  to  make  sure  that  no 
incidents  "occur  which  would  involve  Argentine  or  Chilean  vessels  and 
that  instructions  to  this  effect  be  carefully  observed.  Submarine 

U  "507"  which  is  stationed  off  the  Brazilian  coast  should  be  ordered 
to  report  on  the  circumstances  under  which  the  Brazilian  ships  were 
sunk. 


VI.   Aerial  Warfare 


1.    British  Isles  and  Vicinity; 


'  During  the  day  reconnaissance  missions  were  carried  out 
and  landing  vessels,  as  well  as  the  town  of  Selcombe,  were  attacked 
by  fighter-bombers.   In  the  night  of  22  Aug.  a  few  planes  raided 


-272- 


CONFIDENTIAL 
22  Aug.  1942 

Great  Yarmouth,  Grimsby,  and  other  localities,   after  failing  to 
reach  the  main  targets,  namely,  Cambridge  and  Boston.   Enemy  planes 
flew  in  small  numbers  over  the  occupied  territories  during  the  day 
and  at  night.   No  incursions  were  made  into  Reich  territory,, 

.,  2.    Mediterranean  Theater: 

Convoy  escort  and  reconnaissance  missions  were  carried 
out  over  the  Mediterranean.-  4  planes  were  shot  down. 

3.   Eastern  Front : 

2,141  missions  were  flown  on  22  Aug.   122  enemy  planes 
were  shot  down,  3  of  our  planes  were  lost,  and  3  enemy  planes  were 
destroyed  on  the  ground.  Reconnaissance  flights  were  carried  out 
over  the  Caspian  Sea.   In  the  Arctic  Ocean,  the  Valamovo  airfield 
was  again  raided  v/ith  observed  effect. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

According  to  an  intelligence  report  from  Spain,  the  FIJI- 
class  cruiser  still  at  Gibraltar  is  the  NIGERIA.   The  other  FIJI- 
class  cruiser  which  departed  with  the  aircraft  carrier  force'  is 
said  to  be  the  KENYA.   The  carrier  force  has  not  been  sighted  in 
the  Mediterranean,  which  seems  to  prove  definitely  that  it  left  for 
the  Atlantic. 

Otherwise  there  was  nothing  to  report. 

2.  Own  Situation,  Mediterranean: 

1  German  plane  sighted  1  apparently  damaged  enemy  sub- 
marine escorted  by  a  fighter  12  miles  west  of  Lampione  Island. "The 
tanker  POZARICA  which  had  been  damaged  by  an  aerial  torpedo  hit  on 
21  Aug.  was  brought  into  the  roadstead  of  Corfu  where  the  tanker 
JSAN  ANDRES  will  take  over  her  fuel  supply.   During  the  attack  on  the 
POZARICA,  the  escort  vessels  were  strafed  by  enemy  planes  and 
suffered  rather  heavy  casualties.  Enemy  submarines  unsuccessfully 
attacked  1  Italian  landing  craft  en  route  to  Gaeta  north  of  Ischia. 
The  Italian  torpedo  boat  CANTORE  sank  7  miles  off  Ra3  el  Tin  as  a 
result  of  a  mine  hit  while  escorting  the  steamer  PETRARCA  from 
Benghazi  to  Tobruk. 

3.  Transport  of  Supplies  to  North  Africa: 

Transport  of  supplies  from  Italy  and  Greece  to  North 
Africa  proceeded  as  planned. 

4.  Area  Naval  Group  South: 

•Aegean  Sea: 

On  the  evening  of  21  Aug.  enemy  planes  attacked  the 
Castelli  airfield.   Convoy  operations  proceeded  as  planned. 

Destroyer  ZG  "3*  has  been  named  HERMES. 


-273- 


CONFIDENTIAL 
22  Aug.  19 42 

Black  Sea; 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

On  20  Aug.  our  artillery  set  afire  the  German  200-ton 
steamer  which  had  run  aground  south  of  Cossa  Chushka  on  19  Aug., 
although  the  steamer  gave  recognition  signals.   During  the  feinted 
landing  on  the  south  coast  of  the  Taman  Peninsula,  carried  out  with 
Italian  subchasers  in  the  night  of  20  Aug.,  the  Russians  defended 
themselves  by  opening  fire  from  land-based  batteries  and  machine 
guns  with  the  aid  of  searchlights.  The  subchasers  re-entered 
Feodosiya  without  having  suffered  any  losses. 

The  operation  which  3  Italian  subchasers  were  to  carry  out  against 
enemy  ship  traffic  off  Novorossisk  in  the  night  of  21  Aug.  had  to 
be  broken  off  because  one  of  the  boats  was  unable  to  participate. 

The  Rumanian  submarine  DELFINUL  which  departed  for  her  first  opera- 
tion after  a  long  repair  period  in  the  shipyard  on  21  Aug.  was 
forced  to  return  to  Constanta  because  of  some  technical  failure. 

On  20  and  21  Aug.,  the  transport  of  supplies  in  the  Sea  of  Azov 
from  Mariupol  and  Taganrog  to  Azov  was  carried  out  with  2  landing 
craft,  7  Air  Force  Siebel  ferries,  a  number  of  lighters,  and  1 
engineers  pontoon.   Since  the  mine-sweeping  plane  which  was 
promised  for  18  Aug.  has  not  yet  arrived  in  Mariupol,  the  port 
commander  of  Mariupol  has  assigned  an  Air  Force  Siebel  ferry  to 
sweep  the  routes.   The  route  between  Yeisk  and  Mariupol  will  be 
swept  by  7  wooden  boats. 

Special  Items: 

(1)  The  Army  General  Staff  sent  the  following  telegram  to  Army 
Group  A,  with  copies  to  the  Admiral,  Black  Sea,  the  Naval  Shore 
Commander,  Ukraine,  and  the  4th  Air  Force: 

"In  support  of  measures  taken  by  Army  Group  A,  it  is  confirmed 
that  according  to  the  Fuehrer's  decision  Army  Group  A  is  to  ex- 
ercise exclusive  control  over  the  use  of  ship  tonnage  in  the  Sea 
of  Azov  and  on  the  Don  River  for  tactical  as  well  as  for  supply 
tasks  • 

"It  is  essential  to  get  shipping  moving  immediately,  utilizing  as 
much  as  possible  of  the  tonnage  available.   The  Navy  is  supposed 
to  meet  demands  made  in  this  connection  to  the  limit  of  their 
ability." 

Since  the  Air  Force  is  not  under  the  command  of  Army  Group  A  in  the 
Sea  of  Azov  area,  the  problem  of  shipping  tonnage  for  the  require- 
ments of  the  Air  Force  is  still  to  be  settled. 

(2)  The  Naval  Staff  Operations  Division  is  unable  to  support  the 
request  of  Group  South  for  allocation  of  reserve  vessels  to  the 
1st  PT  Boat  Flotilla  unless  it  is  possible  to  make  2  more  crews 


-274- 


CONFIDENTIAL 


22  Aug.  1942 


available  for  the  6th  PT  Boat  Flotilla  without  resorting  to  the 
flotillas  operating  in  the  Channel.   The  Fleet  Branch  of  the  Na- 
val Staff  Quartermaster  Division  and  the  Recruitment  Division 
of  the  General  Administration  Bureau  have  been  notified  accord- 
ingly. 

(3)  "Grdup  South  reports  that  in  view  of  the  heavy  fighting  at 
Stalingrad  the  IV  Air  Corps  has  been  temporarily  withdrawn  from 
the  Crimea.   This  means  that  operation  "Bluecher"  will  have  to  be 
postponed  for  at  least  5  days.   It  may  even  have  to  be  delayed 
until  early  September. 


VIII.  Situation  East  Asia 

According  to  a  U.S.  communique,  American  forces  have  carried 
out  a  raid  on  Ma kin  Island  north  of  the  formerly  British-owned 
Gilbert  Islands,  during  which  the  Japanese  seaplane  base  was  de- 
stroyed along  with  2  seaplanes,  and  1  Japanese  transport  and  1 
gunboat  were  sunk  by  U.S.  fleet  vessels.   The  Japanese  Headquarters 
reports  that  a  landing  attempted  by  about  200  Americans  on  17  Aug. 
was  completely  repulsed  despite  their  numerical  superiority. 

According  to  Anglo-American  press  reports,  U.S.  forces  in  the  Solo- 
mon Islands  have  completed  the  conquest  of  the  islands  Tulagi, 
Guadalcanal,  and  Florida.   They  also  gained  footholds  on  3  more 
islands  situated  farther  to  the  west.   The  Japanese  are  expected 
to  counterattack.   Further  reports  state  that  British  and  Indian 
troops  penetrated  into  the  Japanese-occupied  territory  of  Burma 
and  remained  there  for  3  weeks  to  destroy  installations  and  to  take 
prisoners. 


IX.   Army  Situation 

1 .   Russian  Front : 

Army  Group  A: 

South  of  the  Kuban  River,  the  offensive  of  the  V  Army 
Corps  divisions  is  slowly  making  headway  in  southwesterly  direction 
toward  Novorossisk.   South  of  Maikop,  our  riflemen  are  engaged  in 
a  battle  with  enemy  forces  north  of  the  Byeloryechensky  Pass. 

On  21  Aug.  a  mountain  detachment  hoisted  the  German  war  flag  on  the 
peak  of  the  Elbrus  Mountain.  West  of  Mai sky,  the  enemy  made  a  heavy 
attack  on  our  bridgehead  over  the  Urvana  River.   Our  forces  have 
been  assembled  near  Baksan  and  Edisia  for  an  attack  in  southeasterly 
direction  scheduled  for  23  Aug.   The  LII  Army  Corps  is  advancing 
toward  the  southeast  through  a  territory  which  for  the  time  being 
Is  still  free  of  enemy  forces. 


-275- 


CONFIDENTIAL 


22  Aug.  1942 


Army  Group  B; 

The  6th  Army  is  carrying  out  its  flanking  attack  on 

Stalingrad  against  stiff  enemy  resistance.  On  the  northern 

front  of  the  Don  position,  our  troops  have  to  repulse  repeated 
enemy  attempts  to  cross  the  river. 

Central  Army  Group; 

The  enemy  has  launched  an  offensive  against  the  entire 
front  of  our  attacking  forces  in  the  Sukhinichi  area.  Except  for 
a  few  penetrations,  the  attack  was  repulsed.   This  puts  an  end  to 
our  attack  plan  in  this  area.   Southeast  and  east  of  Rzhev,  superior 
enemy  troops  forced  us  to  yield  the  bridgehead  over  the  Volga  River, 
blow  up  the  bridge,  and  withdraw  our  positions.   Our  situation  is 
extremely  critical. 

Northern  Army  Group : 

Local  enemy  attacks  were  reported, 

2.  Finnish  Fronts 

No  noteworthy  reports  have  been  received. 

3.  North  Africa: 

Air  reconnaissance  reported  that  the  enemy  forces  v/ere 
apparently  being  regrouped  and  that  a  new  division  has  been  brought 
up.   Otherwise  enemy  reconnaissance  was  very  active,  artillery 
activity  was  as  usual,  and  there  was  little  air  activity. 


-276- 


CONFIDENTIAL 

23   Aug.    lQl+2 
Sunday 

Items    of   Political  Importance 

Braz.il  t 

On  22  Aug.  the  Brazilian  Foreign  Ministry  declared  war  on 
Germany  and  Italy. 

No.  declaration  of  war  on  Japan  has  been  issued  by  Brazil.  Accord- 
ing*^ British  press  and  radio  reports,  the  Foreign  Minister  of 
Uruguay  stated  that  Uruguay  will  follow  the  example  of  Brazil. 

In  a  note  to  the  German  and  Italian  governments,  the  Brazilian 
Foreign  Minister  summarized  Brazil *s  attitude  toward  the  Axis 
powers  up  to  the  present  time  In  9  points  and  pointed  out  the 
reasons  which  led  to  the  declaration  of  war.  According  to 
this  statement,  the  5  recent  sinkings  by  torpedo  attacks  con- 
stituted a  flagrant  violation  of  International  law  and  of  human- 
itarian principles  and  were  warlike  acts  which  were  bound  to 
result  in  a  declaration  of  war.  For  a  detailed  report  see 
Political  Review  No.  197,  Paragraph  1. 

Reuter  reports  that  universal  mobilization  Is  Impending  In  Brazil. 
The  Brazilian  fleet  is  said  to  be  already  at  sea. 

President  Vargas  said  In  a  speech  that  In  the  future  all  Brazilian 
convoys  will  be  protected  by  the  Fleet  and  the  Air  Force  In  close 
cooperation  with  the  U.S.  Air  Force. 

Portugal; 

The  Transocean  News  Agency  reports  that  Brazil's  entry  Into 
the  war  has  caused  consternation  in  Lisbon.     President  Carmona 
has  assured  the  President  and  the  people  of  Brazil  of  his   own 
and  Portugal's  brotherly  feelings  for  that  oountry  on  the   occasion 
of  Brazil's  entry  info  the  war. 

Finland; 

Minister  Tanner  stated  in  a  speech  that  Finland  will  not  accept 
any  separate  peace  overtures.  As  a  result  of  past  disillusionment, 
the  country  has  no  longer  any  confidence  In  the  peace  offers 
which  are  being  presented  to  it. 

Great  Britain; 

Air  Minister  Sinclair  declared  that  Britain  will  relentlessly 
carry  on  her  air  attacks  on  Germany.  The  Germans  may  again  send 
their  bombers  against  England  when  the  weather  changes  in 
Russia.  Dieppe  was  the  scene  of  the  heaviest  fighting  In  the 
air  that  has  ever  'occurred  on  any  of  the  fronts.  Within  2k   hours 
far  more  than  3,000  single  attacks  were  carried  out.  Britain 
is  now  faced  with  a  new  crisis. 

The  London  Times  expects  a  new  German  offensive  in  Egypt  within 
the  next  few  days.  The  German  parachute  troops  which  have  been 
transferred  from  Crete  to  North  Africa  are  expected  to  be  em- 
ployed in  this  operation. 

India; 

The  Indian  party  "Hindu  Mahsabha"  has  rejected  the  Pakistan  plan. 

-277- 


CONFIDENTIAL 
23  Aug.    191+2 

U.S.A.: 

Willkle  is  leaving  for  Turkey  and  the  Near  East.  American  press 
reports  attribute  to  this  trip  a  greater  importance  than  to  any 
similar  mission  of  earlier  special  envoys  of  President  Roosevelt, 
At  the  present  moment  everything  hinges  on  the  future  of  Russia. 
Should  Russia  fall,  special  attention  must  be  devoted  to  Turkey 
so  as  to  prevent  the  Germans  from  getting  hold  of  the  entire 
Middle  East  up  to  the  Indian  frontier  and  cutting  the  British 
Empire  in  two. 

The  Brazilian  Ambassador  in  Washington  declared  that  his  Govern- 
ment will  technically  maintain  its  neutrality  toward  Japan. 


Special  Items; 

At  1910  the  Armed  Forces  High  Command  Operations  Staff  authorized 
the  enforcement  against  Brazil  and  Uruguay  of  all  war  measures 
similar  to  those  in  force  against  the  other  enemy  countries. 

The  Naval  Staff  informed  Group  West  and  the  Commanding  Admiral, 
Submarines  of  this  step. 

Nothing  is  known  at  the  Naval  Staff  about  a  declar- 
ation of  war  by  Uruguay.  Evidently  the  Armed 
Forces  High  Command  has  more  recent  news  about  the 
matter. 

Since  the  Navy  might  eventually  be  held  responsible  for  Brazil's 
entry  into  the  war,  the  Naval  Staff  wants  to  state  the  following 
facts : 

1.  Foreseeing  that  the  unintentional  sinking  of  neutral 
South  American  ships  due  to  their  inadequate  marking  must  result 
in  political  difficulties  and,  eventually,  cause  more  countries 
to  enter  the  war,  the  Naval  Staff  suggested  to  the  Foreign  Office 
on  10  Jan.  I9I4.2  that  notes  be  sent  to  the  neutral  seafaring  nations 
stating  that  the  present  expansion  of  the  war  has  prompted  the 
Reich  Government  to  ask  the  respective  neutral  government  to  have 
its  ships  properly  marked  so  that  any  confusion  with  enemy 
vessels  and  the  resulting  incidents  can  be  avoided.   Aware  of 

the  importance  of  such  a  notification,  the  Naval  Staff  again 
requested  the  Foreign  Office  on  31  Jan.  19^2  to  send  out  the  notes 
as  soon  as  possible.  However,  the  Foreign  Office  was  willing 
to  notify  only  Argentina  and  Chile.  Telegrams  to  this  effect 
were  sent  on  10  Feb.  I9I4.2.  The  Foreign  Office  took  the  stand 
that  those  South  American  oountries  which  had  broken  oi  f  their 
relations  with  us  should  not  be  notified  and  that  the  German 
position  concerning  the  marking  of  ships  was  often  enough  discussed 
in  the  press.  The  Naval  Staff  nevertheless  suggested  a  new  press 
release  to  this  effect.  As  far  as  is  known  here,  no  such 
announcement  was  made. 

2.  In  the  beginning,  immediate  use  of  arms  against  Brazilian 
merchant  ships  was  permitted  only  when  they  were  escorted  by  enemy 
ships,  were  sending  radio  or  other  messages  in  violation  of  the 
regulations  governing  the  right  of  prize,  or  were  sailing  with 
their  lights  dimmed  and  could  not  be  Identified  as  Brazilian 

-278- 


CONFIDENTIAL 
23  Aug.    I9I4.2 

vessels.      Later   incidents   in  which  Brazilian   ships   were   involved 
prove   that    the  behavior   of   our  submarines  was   at  all   times  beyond 
reproach. 

3.        As   soon  as    the  Brazilians   began  to  paint   their  ships 
for  camouflage  purposes   and  to  arm  them ,  pe  rmi  s  s  i  on  to   attack  at 
once  any  South  American  ship  recognized  as   armed  was  granted 
our  forces   on  15  May  I9U2. 

]+.        Subsequent  to  the  air  attacks   on  Axis   submarines    off 
the  Brazilian  coast  and   the   official  announcement  by  the  Brazilian 
Air  Ministry  that   the  attacks   were  made  by  Brazilian  planes,    the 
Naval  Staff   asked  the  Armed  Forces  High  Command  Operations   Staff 
on.  29  May  I9I4.2  to  authorize   the  use   of  arms   against  Brazilian 
naval   forces  and  merchant   ships,      In  accordance  with  the  Fuehrer's 
statement    that   If  worst   comes   to  worst  no  halfway  measures   should 
be  used,   a   large-scale    operation  was   planned,    but   the  plan  was 
dropped  for  political   reasons.      At  the  same   time,   the  Armed 
Forces  High  Command  Operations   Staff  issued  new   regulations  for 
the  use   of  arms   against  Brazilian   ships    on   1  Jun.   19l42.     The 
Foreign   Office,   which  had  agreed  to  these  measures   as   ordered,  • 
was  fully  aware   that  they  would  in   time   lead   to  a   state    of  war 
with  Brazil.     Ambassador   Rit  ter  confirmed  this   over  the   tele- 
phone   as   recently  as   2  days   ago. 

5»       After   the   sinking    of  5   (five)    steamers   outside  the 
Brazilian   territorial  waters    on  16  and  17  Aug.    I9I+2,   the  Foreign 
Office   asked   that   our  forces   refrain  from  operating   against 
Brazilian  coastal  traffic  and  keep  at  a  distance   of   about  30 
(thirty)   miles  from  the  coast.     Instructions   to  this  effect 
were  duly  issued. 

This   statement  was  made  known  to   the   Permanent   Representative   of 
the  Commander   in  Chief,  Navy  at  the  Fuehrer  Headquarters  and  to 
the  Naval  Representative   on  the  Armed  Forces  High  Command 
Operations   Staff   so  that   they  are  prepared  for  any  eventuality. 
For  copy  see  Telegram  l/Skl  I   c  20761j./l|.2  Gkdos.   In  War  Diary,    . 
Part  C,   Vol.   IV. 


Situation  23  Aug.  19)42 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation; 

No  reports  have  been  received  from  our  vessels    in 
foreign'  waters. 

All  vessels   in  foreign  waters  were   informed  via  Radiogram  OI3I4. 
that  we   are  now   in   a  state   of  war  with  Brazil. 

Information   on   the   enemy  situation  was    sent   out   via  Radiogram 
0652. 


-279- 


CONFIDENTIAL 
23  Aug.  19U2 

II.  Situation  West  Area 

1*   Enemy  Situation; 

In  the  evening  air  reconnaissance  spotted  6  destroyers 
on  a  southeasterly  course  and  one  on  a  -westerly  course  west  of 
Beachy  Head.  In  the  morning  20  to  25  steamers  with  6  patrol 
vessels  were  proceeding  on  a  southwesterly  course  off  Eastborough. 

2.   Own  Situation; 

Atlantic  Coast; 

The  ban  on  ship  traffic  in  the  Gironde  was  lifted. 

Channel  Coast; 

So  far,  2  transports  and  5  assault  boats  which  partici- 
pated in  the  enemy  operation  of  19  Aug.  have  been  brought  into 
Dieppe.   Our  coastal  batteries  fired  several  rounds  on  ships 
located  east  of  Folkestone  between  0019  and  0100  without  observing 
the  effect. 

Mine  operation  "Klara"  is  scheduled  to  be  carried  out  in  the 
night  of  25  Aug. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation; 

Air  reconnaissance  spotted  2  northbound  convoys  of  50 
and  25  steamers  east  of  Great  Yarmouth.   35  northbound  steamers 
were  located  off  the  Humber  estuary  and  5  southbound  steamers 
were  located  off  Flamborough  Head. 

Own  Situation; 

Mine  operation  "Eleanor"  was  carried  out  in  the  night 
of  22  Aug.  as  planned. 

Mine  sweeper  M  "3230"  sank  off  Flushing  in  quadrant  AN  8763 
after  hitting  a  ground  mine.   The  entire  crew  was  rescued, 
including  a  number  of  wounded.  Convoy  and  patrol  operations  in 
the  area  of  the  Commanding  Admiral,  Defenses,  North  proceeded 
according  to  plan. 

In  the  course  of  daylight  incursions  of  enemy  planes  into  the 
Dutch  area  and  the  German  Bight,  17  demolition  bombs  were  dropped 
on  Emden,  beginning  at  I309.   8  of  the  bombs  fell  on  the  Nord- 
seewerke .   The  raid  caused  minor  property  damage. 

2.  Norway,  Arctic  Ocean; 

Enemy  Situation; 

5   steamers   and  2  corvettes  were   sighted  on   a  2l|.0o 
course   south   of  Iceland. 

-280- 


CONFIDENTIAL 
23  Aug.  19^2 

Own  Situation; 

At  O355  a  plane  presumed  to  "be  a  British  seaplane  landed 
I4.  men  near  Sommaroe  on  Langoe.  One  of  them  was  shot,  the  3  others 
are  being  searched  for.  Rubber  rafts  together  with  their  contents 
were  seized. 

-Th»  Commanding  Admiral,  Norway  has  granted  the  request  of  the 
Admiral,  Vilest  Norwegian  Coast  for  removal  of  8  to  10  anti-sub- 
marine mines  type  B  from  the  anti-submarine  minefield  located 
on  the  northern  side  of  the  Westby  Fjord,  20  that  the  cruiser 
KOENIGSBERG  which  has  been  raised  keel  up  can  be  towed  through 
to  a  bay  with  a  sand  bottom  where  she  will  be  turned  right  side 
up. 

The  weather  expedition  "Holzauge"  has  started. 

The  Admiral,  Arctic  Ocean  informed  the  naval  forces  participating 
in  operation  "Wunderland"  via  radiogram  about  the  convoy  en 
route  from  eastern  to  western  Siberia,  which  is  presumed  to  con- 
sist of  I),  icebreakers  and  19  ships  according  to  the  report  of  the 
Naval  Staff  Intelligence  Division  to  Group  North. 

Referring  to  this  convoy,  Group  North  suggests  that  operation 
"Wunderland"  be  extended,  and  recommends  the  assignment  of  the 
submarines  to  patrol  duty  in  the  east  to  southeast  part  of  the 
area.  . 

This  step  is  completely  in  accord  with  the  views 
of  the  Naval  Staff  which  welcomes  as  especially 
gratifying  the  present  energetic  response  of  the 
Group  with  regard  to  the  Siberian  convoy. 

As  suggested,  the  Admiral,  Arctic  Ocean  extended  the  operation 
in  order  to  intercept  the  convoy.  On  the  other  hand,  the  thrust 
into  the  Kara  Sea  will  not  be  carried  out  for  the  time  being. 

Submarine  U  "355"  left  quadrant  AB  3855  to  return  to  Narvik. 

Group  North  has  agreed  to  the  proposal  of  the  Admiral,  Arctic 
Ocean  suggesting  that  mine  operation  "Zar"  be  executed  while 
operation  "Wunderland"  is  still  in  progress  or  directly  there- 
after. On  the  other  hand,  Group  North  does  not  consider  it 
desirable  to  lay  parts  of  the  minefields  closer  together,  as 
suggested  by  the  Admiral,  Arctic  Ocean. 

Group  North  does  not  agree  to  the  replacement  of  the  KOELN  by 
2  or  3  more  destroyers  for  carrying  out  operation  "Rasputin", 
as  proposed  by  the  Admiral,  Arctic  Ocean.  It  insists,  instead, 
on  employing  the  KOELN  so  that  as  many  mines  can  be  laid  as 
possible.  Group  North  realizes  that  in  case  of  bad  weather 
the  operation  may  have  to  be  broken  off  and  undertaken  anew 
with  destroyers. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 
1.  ,  Enemy  Situation: 

No  noteworthy  reports  have  been  received, 

-281- 


CONFIDENTIAL 
23  Aug.  19i42 

2.   Own  Situation: 

In  connection  with  the  loss  of  the  WURI,  the  Commanding 
Admiral,  Defenses,  Baltic  Sea  reports  that  the  explosion  occurred 
exactly  on  the  prescribed  route,  and  that  consequently  the  captalr 
of  the  ship  cannot  be  blamed  for  any  navigational  error.  The 
Commanding  Admiral,  Defenses,  Baltic  Sea  assumes  that  the  mines 
were  British  aerial  mines  with  period  delay  mechanism  or  aooustlc 
mines.  Steps  have  been  taken  to  salvage  the  cargo.  Attempts  are 
also  being  made  to  salvage  the  ship.  For  details  see  Telegram 

1715. 

Mine  operation  "Seehund  I"  in  the  Gulf  of  Finland  has  been 
completed.  In  the  course  of  the  operation,  motor  mine  sweeper 
R  "72"  probably  ran  into  the  "Seeigel"  minefield.  The  hull  of 
the  vessel  is  undamaged  but  the  engine  is  not  working.  Convoy 
operations  in  the  area  of  the  Commander,  Mine  Sweepers,  Baltic 
Sea  proceeded  according  to  plan  without  incidents. 


V.   Submarine  Warfare 

1.  Enemy  Situation: 

A  number  of  submarine  sighting  reports  were  intercepted 
from  the  Bay  of  Biscay,  off  Cape  Hatteras,  and  off  the  Brazilian 
coast.  Also  a  message  was  intercepted  from  a  Brazilian  radio 
station  stating  that  the  Brazilian  coastal  vessel  GADIVA  was 
attacked  by  a  submarine  in  the  same  area  in  which  the  other  6 
Brazilian  vessels  were  torpedoed. 

2.  Own   Situation; 

Group  "Loss"  is  continuing  its  operation  against  the 
convoy  in  the  North  Atlantic  (large  quadrant  AK) .  No  successes 
have  as  yet  been  reported. 

Submarine  U  M98"  intercepted  a  northeastbound  convoy  off  the 
American  coast  in  quadrant  DC  1352  but  was  driven  off  by 
destroyers  and  night  planes. 

Of  the  submarines  in  the  South  Atlantic ,  "submarine  U"506", 
which  belongs  to  the  group  operating  in  the  Freetown  area, 
sank  2  tankers  of  5,000  to  7,000  GRT  in  quadrant  ET  5328. 

I,  addition  to  her  previous  successes,  submarine  U  "507" , 
stationed  off  the  Brazilian  coast,  stopped  a  6,000  GRT  steamer, 
which  was  sailing  with  her  lights  completely  dimmed  out,  with 
gunfire  and  then  sank  her  with  a  torpedo  shot.  The  submarine 
also  sank  the  I50  GRT  sailing  vessel  JACYRA. 

As  far  as  the  vessels  sunk  off  the  Brazilian  coast  to  date  are 
concerned,  the  submarine  stated  in  reply  to  an  inquiry  that 
all  the  vessels  involved  had  been  sailing  alone  and  did  not 
show  a  flag  or  neutrality  markings.  Their  defense  equipment 
and  armament  have  not  been  asertalned.  All  attacks  occurred 
outside  the  territorial  waters.  For  further  discussion  of  this 
issue  with  the  Foreign  Office  see  V»ar  Diary,  Part  C,  Vol.  VIII. 

Further  reports  are  included  in  the  Supplement  to  the  Submarine 
Situation  in  War  Diary,  Part  B,  Vol.  IV. 

-282- 


CONFIDENTIAL 


25   Aug.    I9I4.2 


3.        Special  Items  ; 

On   the   oocasion   of   the  transmission   of   the  Fuehrer 
directive   concerning  the  war  against  Brazil   and  Uruguay,   the 
attention   of   all  submarines   is  being  called  in  particular  to 
the   necessity   of    avoiding   any  incidents  whatsoever  with 
Argentine   and  Chilean   ships   and  carefully  observing  any  direct- 
ives  issued  in   this   respect. 

The  Commanding  Admiral,  Submarines  states  that,  according  to 
reports  from  several  submarines,  the  radar  interception  sets 
installed  on  -these  submarines  were  used  with  good  success  and, 
as  a  result,  the  submarines  were  able  during  the  day  as  well 
as  at  night  to  escape  very  dangerous  air  attacks,  such  as  have 
in  the  past  caused  serious  damage  to,  if  not  the  loss  of ,  at 
least  a  few  of  our  submarines.  These  facts  clearly  show  the 
importance   of   these   radar   interception  sets   for   our   submarines. 

The   Commanding   Admiral,    Submarines  further   remarks   that   the 
Naval  Staff  Communications  Division,   fully  realizing   the 
actual  situation,   has   attacked   the,  problem  with  speed  and 
efficiency.      It  was    owing   to   the   sweeping   special  and  prompt 
measures   undertaken  by  the  Naval  St>aff  Communications   Division 
that  all  the   submarines   scheduled  to  depart  were   equipped  with 
radar   Interception   sets  within  an  unusually  short  period   of 
time.      (See  Telegram  I53O.) 


VI,     Aerial  Warfare 

1.        British  Isles   and  Vicinity; 

During   the   day  our   Air   Force   carried  out   reconnaissance 
flights   and  fighter -bomber   operations    over  localities   on   the 
coast.     No  noteworthy  Incidents   occurred  during   the  night   of 
23  Aug. 

2«        Mediterranean  Theater: 

The   Air  Commander,   Africa  reports   that  his  forces 
carried   out   escort   and   reconnaissance  missions,   as  well  as 
free-lance  patrol  flights. 

3»        Eastern  Front t 

All  in  all,    166  planes  were  reported  shot  down  on  the 
eastern  front.      Reconnaissance  flights  were   carried  out   over   the 
Black  Sea,   the   Caspian  Sea,    and  the   Arctic   Ocean.     A  direct  hit 
was   scored  during   the    air  raid  on   the  barracks  near  Eina  Bay. 
1  Whitley  V  was   shot    down  west  of  Brest-Lit ovsk  on  22  Aug. 

h»       Special  Items: 

The  Air  Force   Operations   Staff  has   somewhat  modified 
the   allocation   of  mine-sweeping  planes    (see  War  Diary  18  Aug.). 
For   copy  see   l/Skl  20321A2  Gkdos .   in  War  Diary,   Part  C,   Vol.  V, 


-283- 


CONFIDENTIAL 
23  Aug.  191+2 

VII «  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean; 

An  aircraft  carrier  of  the  ILLUSTRIOUS  class  left  dock, 
and  the  CHARYBDIS  entered  dock  In  Gibraltar.   3  destroyers  de- 
parted in  westerly  direction,  while  1  destroyer  arrived  from  the 
east.  The  number  of  ships  in  Valletta  was  apparently  unchanged. 
No  enemy  reports  have  been  received  from  the  central  and  eastern 
Mediterranean.   Radio  intelligence  reported  that  an  unidentified 
British  vessel  which  received  fighter  escort  from  Port  Said  in 
the  morning  was  en  route  to  Alexandria. 

The  Admiralty  has  now  confirmed  the  sinking  of  the  submarine 
UPHOLDER  in  the  Mediterranean. 

2.  Own  Situation,  Mediterranean; 

Enemy  planes  attacked  Marsa  Matruh  in  the  night  of 
22   Aug.   and  Tobruk  on  23  Aug.   One  of  the  attacking  planes 
was  shot  down. 

Air  reconnaissance  observed  an  enemy  minefield  consisting  of  at 
least  23  mines  at  the  site  of  the  sinking  of  the  torpedo  boat 

CANTORE. 

A  German  plane  spotted  6  steamers  and  the  wreck  of  1  destroyer 
In  the  area  between  Cape  Bon  and  the  Kerkenna  Islands.  In 
reply  to  an  inquiry,  the  German  Naval  Command,  Italy  stated  that 
it  knew  about  this  sinking  which  occurred  some  time  ago.   Other- 
wise there  was  nothing  to  report. 

3.  Transport  of  Supplies  to  North  Africa? 

Transport  of  supplies  to  North  Africa  was  carried  out 
according  to  plan.  In  the  evening  of  22  Aug.  5  landing  craft 
from  Palermo  arrived  in  Tripoli. 

I4..   Area  Naval  Group  South; 

Aegean  Sea: 

Bad  weather  hampered  the  movements  of  some  of  the 
convoys.  According  to  an  intelligence  report  from  Cairo,  the 
British  are  said  to  have  postponed  their  attack  on  Crete  till 
September. 

Black  Sea» 

Enemy  Situation; 

Radio  intelligence  reports  that  in  the  morning  the 
cruiser  KRASNY  KRIM,  the  flotilla  leader  KHARKOV,  and  1  destroyer 
were  located  at  an  unidentified  position  at  sea.   The  Fleet 
Command  is  still  in  the  Batum  area.  2  destroyers  were  located 
in  the  area  between  Novorossisk  and  Sukhum,  and  6  vessels, 
probably  submarines,  were  looated  in  the  western  part  of  the 
Black  Sea. 

In  the  evening  of  22  Aug.  air  reconnaissance  sighted  1  steamer 
and  2  tankers  in  Novorossisk,  2  steamers  and  5  patrol  vessels 
on  a  southeasterly  course  between  Tuapse  and  Sukhum,  and 

^28i|- 


CONFIDENTIAL 
23  Aug.    I9I4.2 

1  submarine  85  miles  east  of  Yalta. 

Own  Situation; 

'  In  the  night  of  22  Aug.  the  1st  PT  Boat  Flotilla  en- 
countered no  ships  off  Tuapse  except  for  patrol  vessels,  hut 
observed  many  southbound  vessels  moving  in  columns  on  the 
coastal  route. 

J4  vessels  of  the  3rd  Motor  Mine  Sweeper  Flotilla  departed  from 
Constanta  in  the  evening  of  22  Aug.  and  arrived  at  Balaklava 
at  noon  on  23  Aug.   The  flotilla  spotted  an  enemy  minefield 
3.5  miles  south-southwest  of  Balaklava. 

On  22  Aug.  18  Army  Siebel  ferries  and  2  motor  fishing  smacks 
were  brought  over  from  Osipenko  to  Mariupol  where  the  mine- 
sweeping  plane  arrived  the  same  day.  The  force  is  scheduled 
to  start  operations  off  Yeisk  Immediately  and  to  sweep  the  route 
between  Mariupol  and  Yeisk.  The  transport  of  supplies  from 
Taganrog  to  Azov  proceeded  without  incidents.  So  far,  380 
meters  of  the  unloading  pier  in  Yeisk  have  been  completed. 
The  work  is  being  continued. 

Special  Items: 

The  Naval  Staff  Operations  Division  Is  vigorously 
backing  the  request  of  Group  South  for  transport  tonnage   , 
and  for  the  establishment  of  a  naval  supply  depot  on  the 
Caspian  Sea  with  the  Naval  Staff  Quartermaster  Division, 


VIII. Situation  East  Asia 

No  noteworthy  reports  have  been  received, 


IX.  Army  Situation 

1«   Russian  Front : 

Army  Group  At 

The  Rumanian   3rd  Army  has  penetrated  into  Temryuk. 

The  V  Army  Corps  reached  the  vicinity  of  the  railway  curve 
northwest   of  Novorossisk.     Novorossisk  is   under  fire  from 
our  guns.      Our  forces  in  the  Maikop  area  are  being  regrouped. 
Parts   of  the    1st   Mountain  Division  reached   the   region  north 
of  Klydzh.     A  bridgehead  was   established  across  the   Baksan 
River  west   of  the   town   of  Baksan. 

The   3rd  Panzer  Division  pushed  forward  across  the  undamaged 
Leningrad  Canal  bridge   toward  the  south  and  crossed  the  rail- 
road line  east   of  Mozdok  at  various  points.     No  incidents 
occurred  during  the  advance  of  the   LII  Army  Corps   toward  the 
southeast. 


-285- 


CONFIDENTIAL 
23  Aug.    191+2 

Army  Group  B: 

Parts  of  the  southern  pincers  operating  against 
Stalingrad  pushed  forward  as  far  as  the  railroad  line  on  berth 
sides  of  the  Tinguta  station.   In  the  north,  the  6th  Army 
advancing  in  southeasterly  direction  crossed  the  railway  line 
between  Stalingrad  and  Frolovo  and  reached  the  Volga  River 
on  23  Aug.  at  1700.  Thus,  the  attack  on  Stalingrad  is  entering 
its  crucial  phase. 

Central  Army  Group; 

Enemy  attacks  on  the  front  south  of  Sukhinichi  con- 
tinue. All  forces  had  to  be  thrown  in  to  ward  off  persistent 
enemy  attempts  southeast  and  north  of  Rzhev  to  widen  the 
penetration. 

Northern  Army  Group; 

The  enemy  succeeded  in  driving  another  wedge  into 
the  positions  of  the  SS  Police  Division  southeast  of  Leningrad. 
No  noteworthy  fighting  occurred  on  the  other  sectors  of  the 
Northern  Army  Group.  . 

2.  Finnish  Front; 

No  fighting  of  importance  was  reported. 

3.  North  Africa; 

In  the  night  of  21  Aug.  our  positions  southwest  of 
El  Alamein  were  subjected  to  heavy  artillery  fire.  Enemy 
reconnaissance  and  air  activity  was  as  usual.  German  tanks 
were  increased  to  220  and  Italian  tanks  to  2lt-2. 


-286- 


CONFIDENTIAL 
24  Aug.  1942 

Ttftmn  of  Political  Importance 

Great  Britain: 

Food  Minister  Woolton  declared  that  the  British  need  not  fear  a 
serious  food  shortage,  but  that  they  will  have  to  tighten  their 
belts. 

According  to  press  reports,  the  British  trade  unions  seem  to  have 
decided  to  relax  their  policy  aiming  at  complete  exclusion  of 
Communists.  13  Labour  Party  deputies  in  the  House  of  Commons,  all 
the  deputies  of  the  Independent  Workers'  Party,  and  numerous  other 
leading  figures  have  issued  an  appeal  dealing  with  the  war  and 
peace  objectives  and  demanding  the  establishment  of  a  Socialist 
Great  Britain  as  part  of  the  Socialist  States  of  Europe  whioh  are 
to  be  expanded  into  a  Socialist  World  Commonwealth. 

India: 

A  diplomatic  source  reports  that  the  arrest  of  Gandhi  and  the  Con- 
gress leaders,  and  the  abolition  of  the  Congress  Committee  have 
temporarily  thwarted  the  civil  disobedience  movement.   On  the  other 
hand,  since  the  radical  circles,  which  favor  solving  the  problem 
by  use  of  force,  now  have  a  free  hand,  no  one  at  this  moment  can 
foresee  what  course  events  are  going  to  take.   It  vie  quite  pos- 
sible that  the  Congress  leaders  will  enter  into  negotiations  with 
the  Government  of  India. 

4 

Sweden: 

According  to  a  diploraatio  source,  the  Swedish  Foreign  Office  an- 
nounced that  up  to  now  it  has  unfortunately  been  unable  to  determine 
conclusively  that  the  steamer  LILJEVALCH  was  torpedoed  by  Russian 
submarines.  However,  the  Swedish  Navy  believes  that  it  has  suc- 
ceeded in  sinking  2  or  3  Russian  submarines. 

South  America: 

In  a  message  to  that  country,  Roosevelt  welcomed  Brazil's  declara- 
tion of  war.  The  press  in  Argentina,  Chile,  and  Portugal  expreseee 
sympathy  for  Brazil's  position. 


Conference  on  the  Situation  with  the  Chief.  Naval  Staff 

I.   According  to  the  report  by  the  Chief,  Naval  Communications 
Division,  the  naval  communications  service  worked  perfectly  during 
the  enemy  landing  at  Dieppe.   The  new  alarm  signal  for  enemy  land- 
ings was  used  with  good  results.  Unfortunately,  the  industry  has 
too  many  orders  on  hand  to  be  able  to  produce  these  signals  and 
the  equipment  required  for  their  firing  in  quantities  sufficient 
to  equip  all  naval,  Army  and  Air  Force  stations  on  the  coasts  at 
once. 

The  Chief,  Naval  Communications  Division  discusses  also  the  favor- 
able reports  about  the  use  of  radar  interception  sets  on  submarines. 
He  refers  in  this  respect  to  the  report  of  the  Commanding  Admiral, 
Submarines  as  recorded  in  War  Diary  23  Aug.  Actually,  the  use  of 


^287- 


CONFIDENTIAL 
34  Aug.  1942 

radar  interception  sets  is  to  be  considered  a  mere  expedient.   The 
ultimate  goal  should  be  the  establishment  of  a  ground  organization 
for  determining  the  exact  position  of  enemy  vessels.   The  Navy 
is  working  on  this  problem.   In  this  connection  it  is  neoeesary  to 
negotiate  with  Spain. 

Reports  have  also  been  received  about  satisfactory  results  aohieved 
with  anti-radar  devices  on  submarines  in  the  case  of  2  enemy  de- 
stroyers. 

II.  The  Chief,  Naval  Staff  Quartermaster  Division  reports  about 
the  request  of  the  Commander,  Destroyers  for  the  creation  of  the 
4th  Destroyer  Flotilla.   The  Naval  Staff  Quartermaster  Division  is 
inclined  to  disagree  with  the  request.   The  Chief,  Naval  Staff, 
however,  decides  that  the  Commander,  Destroyers  should  first  state 
his  views  once  more. 

III.  The  Chief,  Naval  Ordnance  Division  discusses  details  concern- 
ing the  Navy  in  connection  both  with  the  conference  notes  of  the 
General  of  Engineers  at  the  Army  High  Command  and  with  the  direotive 
of  the  Armed  Forces  High  Command  regarding  the  Fuehrer's  order  for 
development  of  coastal  fortifications. 

IV.  Captain  Wagner  from  the  Naval  Construction  Division  reports 
on  the  visit  of  the  Minister  for  Armaments  and  War  Production  to 
the  Wilhelrashaven  shipyard.   On  that  occasion  the  Minister  said 
that  he  would  have  to  report  to  the  Fuehrer  that  he  is  unable  to 
supply  the  required  8,400  skilled  workers  for  the  shipyards.   The 
Navy  will  have  to  be  satisfied  with  foreign  labor.   Gauleiter 
Saukel  has  already  received  instructions  to  this  effect.  On  the 
same  occasion  it  was  established  chat  the  Navy  Yard  at  Wilhelmshaven 
already  employs  about  25$  foreign  labor;  whereas  Staatsrat  Blchm, 
who  was  present  at  the  conference,  admitted  in  answer  to  the  Ship- 
yard Superintendent,  Wilhelmshaven  that  his  own  shipyard  employs 
only  about  16$  foreign  labor.   Minister  Speer  suggested  further- 
more that  the  quality  of  the  technical  personnel  be  improved  by 
advancing  higher  officials  without  regard  for  seniority  -  a  step 
which  is  already  under  consideration  by  the  Armed  Forces  High  Com- 
mand. 

V.  The  Chief  of  the  Underwater  Obstacles  Branch,  Naval  Ordnance 
Division  reports  that  rack  mines  are  now  released  in  urgent  cases 
for  use  in  operations  areas  up  to  a  depth  of  250  meters.   They 
will  not  be  released  for  general  purposes  before  the  results  of 
the  test  undertaken  somewhere  in  the  Atlantic  are  known. 

In  a  Restricted  Circle: 

VI.  The  Chief  of  the  Foreign  Affairs  Section,  Naval  Staff  Opera- 
tions Division  reports  about  the  Naval  Staff's  position  with  re- 
gard to  the  question  of  the  use  of  arms  against  Brazilian  vessels, 
as  recorded  in  War  Diary  23  Aug.   For  further  discussion  of  this 
issue  see  War  Diary,  Part  C,  Vol.  VIII. 

In  a  Very  Restricted  Circle: 

VII.  The  Chief,  Operations  Branch,  Naval  Staff  Operations  Division 
reports  on  the  plans  of  Group  North  in  connection  with  the  minefield 
situation  in  the  Arctic  Ooean  and  on  the  progress  of  operation 

"Wunderland". 


-288- 


CONFIDENTIAL 


24   Auft.    1942 


VIII.  The  'Chief  of  Staff,  Naval  Staff  di  s  cusses  the  question  whether 
the  outbreak  of  war  v/Ith  Brazil  makes  it  suitable  to  assign  those 
submarines  which  were  scheduled  to  operate  off  Cape  Town  to  opera- 
tions off  the  Brazilian  coast.   The  Naval  Staff  believes  that  the 
Cape  Town  operation   should  be  carried  out  as  planned  and  that  4 

of  the -submarines,  which  will  become  ready  for  action  at  a  later 
date,  should  be  reserved  for  operations  off  Brazil,  if  necessary. 
The  Chief,  Naval  Staff  is  of  the  same  opinion. 

IX.  The  Chief,  Naval  Staff  Operations  Division  suggests  postponing 
the  award  of  an  oak  leaf  cluster  to  the  ICnight's  Cross  to  the  com- 
mander of  ship  "28"  for  the  time  being;  instead  Commander  von 
Ruckdeschell  should  be  promoted  to  captain  and  av/arded  the  German 
Cross  In  gold.   The  same  decoration  should  be  awarded  to  the  com- 
mander of  ship  "10"  when  the  ship  arrives  in  Japan.   The  Chief, 
Naval  Staff  agrees. 

For  copies  of  these  requests  see  l/Skl  20867  and  20868/42  Gkdos. 
in  War  Diary,  Part  B,  Vol.  V. 


Special  Items : 

I.  According  to  the  report  of  the  Chief,  Naval  Intelligence  Divi- 
sion, Uruguay's  declaration  of  war  on  the  Axis  powers  was  not  com- 
municated to  the  Axis  In  any  way  and  was  mentioned  only  in  a,few 
enemy  radio  reports.   It  is  positive  that  no  such  declaration  has 
been  issued  so  far.   Uruguay's  attitude  will  not  be  determined 
until  today's  special  session  of  the  Cabinet. 

Also  the  Armed  Forces  High  Command  Operations  Staff  reports  that 
the  state  of  war  with  Uruguay  is  not  yet  a  fact. 

The  Naval  Staff  has  instructed  the  Commanding  Admiral,  Submarines 
and  Group  West  accordingly. 

The  Naval  Staff's  belief  that  the  Armed  Forces  High 
Command  was  better  informed  about  the  matter  has 
thus  proved  unfounded.   Of  course,  the  Naval  Staff 
could  not  expect  the  Armed  Forces  High  Command  to 
make  such  an  error. 

II.  The  Naval  Attache  in  Tokyo  reports  that  the  Japanese  Navy 
asked  the  German  Air  Attache  in  Tokyo  to  use  his  influence  to  have 
2  German  planes  assigned  to  direct  air  traffic  between  Japan  and 
Germany.   The  Naval  Atta-che  was  asked  to  support  the  request. 

The  Nnval  Staff  has  an  undeniable  Interest  in  the 
establishment  of  such  a  direct  air  route.   The 
matter,  however,  primarily  concerns  the  political 
authorities  and  the  Commander  in  Chief,  Air  Force. 

III.  On  the  basis  of  information  received  up  to  15  Aug.  1942  the 
Naval  Intelligence  Division,  Foreign  Merchant  Marine  Branch  has 
submitted  a  report  about  the  convoy  and  unescorted  vessel  routes 
in  the  Atlantic.  As  for  the  South  Atlantic ,  the  report  contains 
the  same  facts  as  recorded  in  War  Diary  17  and  21  Aug. 

As  anticipated,  the  Halifax  route  in  the  North  Atlantic  continues 

to  run  somewhat  to  the  north  because  of  the  .  season.   It  3s  confirmed 


-289- 


CONFIDENTIAL 
24  Aug.  1942 

that  incoming  ships  use  the  northern  part  of  the  route  and  outgoing 
vessels  the  southern  part. 

The  convoy  situation  in  the  Western  Atlantic  presents  a  clearer 
picture  than  before. 

2  convoy  routes  for  the  American  coastal  traffic  have  been  definitely 
ascertained:   one  between  New  York  and  the  Florida  Strait,  the  other 
between  Trinidad  and  the*  Florida  Strait.   It  is  not  yet  known 
whether  both  routes  continue  further  in  the  Gulf  of  Mexico. 

In  addition  to  these  ooastal  routes,  convoy  traffic  is  also  being  ■ 
maintained  between  Aruba  or  Trinidad  and  Halifax,  evidently  for 
bringing  oargo  to  or  carrying  cargo  from  the  shins  using  the  Halifax 
route. 

For  report  and  map  see  l/Skl  20993/42  Gkdos.  in  War  Diary,  Part  0, 
Vol.  I. 

IV.   The  Chief  of  the  Communications  Intelligence  Branch,  Naval 
Staff  Communications  Division  has  made  a  survey  of  the  distribution 
of  Russian  naval  forces  as  of  20  Aug.  1942.   For  copy  see  l/Skl 
29123/42  geh.  in  War  Diary,  File  "Barbarossa". 


Situation  24  Aug.  1943 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation; 

South  Atlantic: 

According  to  an  intelligence  report,  2  large  Anglo- 
American  convoys  carrying  troops  and  materiel  for  the  Caucasian 
front  waited  in  Freetown  to  see  whether  the  attempted  crossing  of 
the  Mediterranean  would  be  successful,  and  are  now  being  sent  off 
via  Cape  Town. 

If  this  report  is  based  on  absolutely  reliable 
enemy  information,  it  would  greatly  contribute  to 
a  correct  estimate  of  the  actual  objective  of  the 
convoy  force  recently  shattered  in  the  Mediterranean, 
It  would  be  useful  not  only  to  check  these  facts 
but  also  to  obtain  a  definite  answer  to  the  ques- 
tion of  whether  the  convoy  consisted  of  31  or  12 
merchant  ships. 

According  to  a  report  from  Duala,  both  Victoria  and  Duala  are 
blacked  out,  and  there  are  mines  in  the  Murabo  River. 

Indian  Ocean: 

According  to  an  intelligence  report,  there  are  constantly 
about  100  ships  based  in  Aden  for  the  India  traffic. 

Pacific  Ocean: 

Another  Brazilian  tanker,  the  SANTA  MARIA,  is  reported  to 
have  passed  through  Punta  Arenas  heading  for  the  Paoific  on  15  Aug. 

-290- 


•  COITFIi^ITTIAL 
24  Aug.    1942 

2.        Own   Situation: 


waters . 


LTo  reports  have  been  received  from  our  vessels  in  foreign 


For  the  report  of  the  German  Armistice  Commission,  France  on  the 
positions  of  French  convoys  and  merchant  ships  see  Telegram  1120. 


> 


> 


II.   Situation  'west  Area 

1.   Enemy  Situation; 

According  to  a  report  of  22  Aug.  of  the  Italian  naval  in- 
telligence service,  from  a  generally  well-informed  source,  the 
British  intend  to  make  a  landing  on  the  coast  of  unoccupied  France 
on  26  Aug.  and  to  undertake,  if  possible,  a  simultaneous  operation 
against  the  Spanish  coast  on  the  Bay  of  Biscay. 

As  a  matter  of  principle,  the  enemy  should  never  be 
suspected  of  any  such  blunt  error  as  pushing  France 
and  Spain  on  our  side  by  forcing  them  to  abandon 
their  present  non-committal  attitude,  which  holds 
opportunities  in  either  direction.   Both  the  London 
and  the  Washington  Governments  must  very  well  know 
that  at  the  present  stage  of  the  military  situation 
they  would  encounter  serious  resistance  in  both 
countries  and  would  merely  play  into  our  hands  if 
all  the  men,  merchant  tonnage,  warships,  and  any 
other  war  potential  of  these  two  countries  situated 
on  the  Atlantic  and  the  Mediterranean  became  avail- 
able for  our  military  purposes.   This  would  immed- 
iately relieve  us  of  having  to  make  considerable 
concessions  in  solving  the  political  problems  that 
appear  so  difficult  at  the  present  moment. 

From  this  point  of  view  the  report*  appears  absolutely 
untrustworthy.   (Tr.  II.:   The  last  sentence  of  this 
paragraph  originally  read  as  follows:   "If  we 
evaluate  the  Italian  report  very  critically  -  and 
this  is  probably  unjustified  -  it  might  be  considered 
whether  Italian  ant i -Axis  circles,  which  undoubtedly 
exist,  mistake  the  situation  to  such  an  extent  that 
they  believe  Italy  could  be  brought  to  the  side  of 
the  Allies  by  an  Allied  invasion  of  southern  France 
and  Spain."  This  sentence  was  crossed  out  and  re- 
placed by  the  following  marginal  note  signed  by 
V/agner  on  31  Aug.:   "Not  likely.   It  is  more  likely 
that  the  report  was  inspired  by  concern  of  the 
Italians  that  a  situation  might  arise  with  which 
they  are  unable  to  cope.   For  this  reason  the  sen- 
tence has  been  crossed  out."). 

Air  reconnaissance  over  the  Channel  observed  lively  convoy  and 
steamer  traffic,  as  well  as  mine-sweeping  operations  off  Hastings. 


-291- 


CONFIDENTIAL 
24  Aug.    1942 

2.   Own  Situation; 

Atlantic  Coast; 

Nothing  to  report. 

Channel  Coast; 

Mine  operation  "Klara"  was  executed  during  the  night  of 
23  Aug.   During  the  operation,  the  center  of  the  minefield  was 
under  long-range  covering  fire  between  0540  and  0550.   At  0553 
the  10th  Motor  Mine  Sweeper  Flotilla  and  the  escort  forces  had  an 
engagement  with  enemy  forces.   2  motor  gun  boats  were  set  afire. 

I  enemy  motor  gun  boat  blew  up  after  having  been  set  afire.   Radio 
intelligence  confirms  the  destruction  of  the  vessel.   At  0627  a 
detonation  was  heard  at  the  northern  end  of  the  new  minefield. 
From  the  shore  one  vessel  with  a  funnel  was  observed  to  break  into 
flames,  blow  up,  and  sink  after  hitting  a  mine.   For  the  brief 
battle  report  of  the  commander  of  the  motor  mine  sweeper  force  see 
Telegram  1630.   For  the  report  about  the  mine  operation  see  Tele- 
gram 1655.   It  is  certain  that  the  enemy  is  aware  of  the  minefield, 
since  our  ships  were  located  accurately  and  there  was  an  engagement 
with  enemy  forces  during  the  mine-laying  operation. 

The  2nd  group  of  the  5th  PT  Boat  Flotilla  failed  to  sight  any 
vessels  during  its  patrol  tour  in  the  early  morning  of  24  Aug.   For 
brief  report  of  the  5th  PT  Boat  Flotilla  see  Telegram  1100. 

The  assertion  made  in  the  first  reports  about  the  enemy  landing 
near  Dieppe  on  19  Aug.,  that  1  British  steamer  landed  at  the  outer 
jetty,  proved  incorrect  after  further  investigation.   For  the  cor- 
responding telegram  from  Group  West  to  the  Naval  Staff,  which  con- 
tains also  further  details  about  the  part  played  by  naval  units 
in  repulsing  the  landing,  see  File  "Enemy  Landing  at  Dieppe  on 
19  Aug.  1942". 

II  boats  of  the  2nd  and  4th  PT  Boat  Flotillas  are  scheduled  to 
carry  out  a  mine  operation  on  the  southeast  coast  during  the  night 
of  24  Aug.   During  the  same  night  PT  boats  S  B78n  and  S  "115"  are 
scheduled  to  transfer  from  Boulogne  to  Rotterdam. 


III.  North  Sea.  Norway.  Arctic  Ocean 

1.   North  Sea; 

Enemy  Situation; 

Nothing  to  report. 

Own  Situation; 

Mine  operation  "Fuenfte  Kolonne"  has  begun. 

2  ground  mines  were  swept  off  Borkum.  Convoy  and  patrol  operations 
in  the  area  of  the  Commanding  Admiral,  Defenses,  North  proceeded 
according  to  plan* 


-292- 


CONFIDENTIAL 
34  Aug.  1942 

3.   Norway.  Arctic  Ocean: 

Enemy  Situation; 

Air  reconnaissance  spotted  5  steamers  and  5  escort  ves- 
sels lying  off  Archangel,  and  one  2,000  GRT  steamer  proceeding  in 
the  direction  of  the  harbor  60  miles  off  Archangel. 

Own  Situation; 

Norway ; 

The  equipment  unloaded  by  the  enemy  plane  on  Langoe  Island 
consists  of  3  rubber  rafts  and  2  radio  transmitters.   The  search 
for  the  3  men  who  escaped  has  failed  so  far. 

On  22  Aug.  the  Russian  battery  on  the  Rybachi  Peninsula  fired  at 
Nurmansaetti  and  at  the  approach  to  Petsamo  harbor  without  causing 
any  damage.  In  spite  of  search  gear,  hydrophones  and  plane  sup- 
port, subchase  in  the  Feiestein-Lister  area  was  unsuccessful. 

Transport  and  convoy  operations  proceeded  according  to  plan.  The 
steamer  KERKPLEIN,  from  the  transport  group  carrying  Russian  war 
prisoners,  was  put  in  quarantine  in  Kirkenes  on  suspicion  of  typhus. 

The  Commanding  Admiral,  Norway  has  issued  directives  for  the  release 
of  battle  instructions  for  coastal  batteries.   For  copy  of  message 
to  the  Naval  Staff  Operations  Division  see  l/Skl  20769/42  Gkdos. 
in  War  Diary,  Part  C,  Vol.  X. 

Group  North  has  agreed  to  the  proposal  of  the  Commanding  Admiral, 
Norway  concerning  the  removal  of  the  UMB  mines  from  the  minefield 
in  the  Westby  Fjord.   The  gap  will  be  refilled  after  the  KOENIGSBERG 
has  been  towed  through.   Group  North  also  agrees  to  the  laying  of 
5  single-row  anti-submarine  minefields  in  the  area  between 
Kristiansand  South-  and  Stavanger,  as  proposed  by  the  Commanding 
Admiral,  Norway,  and  requests  the  Naval  Staff  to  authorize  the 
operation  (see  Telegram  1823). 

In  connection  with  this  mine  project,  the  Fleet  suggests  that  mine- 
fields 1,  2,  4,  and  5  be  laid  at  a  distance  of  at  least  2.5  to  3 
miles  both  from  the  inner  and  the  outer  routes,  and  that  minefield 
3  not  be  laid.   To  assure  the  necessary  freedom  of  movement,  the 
Fleet  demands  that  the  mines  be  laid  at  a  depth  of  at  least  15 
meters.   (See  Telegram  2105.) 

Arctic  Ocean; 

The  Admiral,  Arctic  Ocean  supplements  his  directive  for 
extension  of  operation  "Wunderland"  (see  War  Diary  23  Aug.)  with 
the  remark  that  it  is  not  meant  as  an  inflexible  order,  and  that 
the  thrust  into  the  Kara  Sea  may  be  oarried  out  if  circumstances 
promise  success. 

Mine  operation  "ZarH  was  started  in  the  evening.  The  route  for 
the  mine  sweeper  ULM  corresponds  to  the  departure  route  of  the 
SCHEER  up  to  78°  N,  40°  E.   From  there  on,  the  vessel  is  to  change 
to  an  easterly  course  in  order  to  mine  a  large  area  bounded  by 


-293- 


CONFIDENTIAL 


34  Aug.    1943 


75°  N,  55°  35»  E;  75°  N,  53°  E;  76°  30«  N,  53°  E;  77°  30'  N,  63°  E. 
Beginning  at  1300  on  37  Aug.  no  vessels  are  permitted  to  pass  througi 
this  mined  area. 

Air  reconnaissance  reports  that  on  23  Aug.  the  waters  on  the  west- 
ern coast  of  Novaya  Zemlya  were  free  of  ice  and  the  Matochkin  Shar 
was  covered  with  drift  ice.   A  30  to  50  km.  wide  drift  ice  zone  was 
observed  off  the  eastern  coast  of  Novaya  Zemlya,  while  the  rest  of 
the  Kara  Sea,  as  well  as  the  Kara  and  Yugor  Straits,  were  free  of 
ice.   It  has  not  been  established  whether  ships  can  pass  through 
the  Matochkin  Shar. 

Group  North  expects  all  unacoorapanied  steamers  proceeding  from  the 
British  Isles  to  the  east  to  carry  valuable  cargo,  which  means  that 
it  would  pay  to  send  comparatively  strong  forces  against  these 
steamers,  particularly  since  the  system  of  using  unaccompanied 
vessels  for  the  transport  of  enemy  supplies  is  undesirable  and 
makes  the  sinking  of  such  Bhips  imperative.   The  Naval  Staff  is  of 
the  same  opinion. 

The  Naval  Staff  has  asked  Group  North  to  investigate  how  the  as- 
signment of  3  Finnish  submarines  to  the  area  of  the  Admiral,  Arctic 
Ocean  would  affect  the  problem  of  bases  and  supplies,  and  what  ar- 
rangements would  have  to  be  made  concerning  command. 

Group  North  has  ordered  that  all  submarine  commanders  be  informed 
of  the  experiences  made  with  convoy  PQ  18.  For  telegram  to  Naval 
Staff  see  l/Skl  30825/43  Gkdos.  in  War  Diary,  File  "Eispalast". 


IV.   3kagerrak.  Baltic  Sea  Entrances.  Baltic  Sea 

1.   Enemy  Situation: 

Nothing  to  report. 

3.   Own  Situation: 

The  Finnish  steamer  ELSE  struck  a  mine  and  sank  off 
Vesborg  (Samsoe).  A  mine-detonating  vessel  swept  1  ground  mine 
6  miles  north  of  Swinerauende. 

Minefields  "Seehund  I"  and  "Seeigel  XXI"  were  laid  in  the  Gulf  of 
Finland  according  to  plan.  During  the  laying  of  minefield  "Seeigel 
XXI",  11  enemy  vessels  were  sighted,  including  3  large  motor  mine 
sweepers  or  patrol  vessels.   Two  explosions  were  observed,  ac- 
companied by  big  columns  of  fire  which  later  changed  into  a  glow. 
It  is  therefore  assumed  that  3  vessels  were  destroyed  in  the 
"Seeigel  II"  minefield. 


It Merchant  Shipping 

On  the  basis  of  data  about  the  Spanish  shipbuilding  industry 
supplied  by  the  Naval  Intelligence  Division,  Foreign  Merchant 


-394- 


CONFIDENTIAL 
34  Aug.  1942 

3.   Norway.  Arctic  Ocean; 

Enemy  Situation: 

Air  reconnaissance  spotted  5  steamers  and  5  escort  ves- 
sels lying  off  Archangel,  and  one  2,000  GRT  steamer  proceeding  in 
the  direction  of  the  harbor  60  miles  off  Archangel. 

Own  Situation: 

Norway: 

The  equipment  unloaded  by  the  enemy  plane  on  Langoe  Island 
consists  of  3  rubber  rafts  and  2  radio  transmitters.   The  search 
for  the  3  men  who  escaped  has  failed  so  far. 

On  22  Aug.  the  Russian  battery  on  the  Rybachi  Peninsula  fired  at 
Nurmansaetti  and  at  the  approach  to  Petsamo  harbor  without  causing 
any  damage.  In  spite  of  search  gear,  hydrophones  and  plane  sup- 
port, subcha8e  in  the  Feiestein-Lister  area  was  unsuccessful. 

Transport  and  convoy  operations  proceeded  according  to  plan.  The 
steamer  KERKPLEIN,  from  the  transport  group  carrying  Russian  war 
prisoners,  was  put  in  quarantine  in  Kirkenes  on  suspicion  of  typhus. 

The  Commanding  Admiral,  Norway  has  issued  directives  for  the  release 
of  battle  instructions  for  coastal  batteries.   For  copy  of  message 
to  the  Naval  Staff  Operations  Division  see  l/Skl  20769/42  Gkdos. 
in  War  Diary,  Part  C,  Vol.  X. 

Group  North  has  agreed  to  the  proposal  of  the  Commanding  Admiral, 
Norway  concerning  the  removal  of  the  UMB  mines  from  the  minefield 
in  the  Westby  Fjord.   The  gap  will  be  refilled  after  the  KOENIGSBERG 
has  been  towed  through.   Group  North  also  agrees  to  the  laying  of 
5  single-row  anti-submarine  minefields  in  the  area  between 
Kristiansand  South  and  Stavanger,  as  proposed  by  the  Commanding 
Admiral,  Norway,  and  requests  the  Naval  Staff  to  authorize  the 
operation  (see  Telegram  1823). 

In  connection  with  this  mine  project,  the  Fleet  suggests  that  mine- 
fields 1,  2,  4,  and  5  be  laid  at  a  distance  of  at  least  2.5  to  3 
miles  both  from  the  inner  and  the  outer  routes,  and  that  minefield 
3  not  be  laid.   To  assure  the  necessary  freedom  of  movement,  the 
Fleet  demands  that  the  mines  be  laid  at  a  depth  of  at  least  15 
meters.   (See  Telegram  2105.) 

Arotic  Ocean: 

The  Admiral,  Arctic  Ocean  supplements  his  directive  for 
extension  of  operation  "Wunderland"  (see  War  Diary  23  Aug.)  with 
the  remark  that  it  is  not  meant  as  an  inflexible  order,  and  that 
the  thrust  into  the  Kara  Sea  may  be  carried  out  if  circumstances 
promise  success. 

Mine  operation  "ZarH  was  started  in  the  evening.  The  route  for 
the  mine  sweeper  ULM  corresponds  to  the  departure  route  of  the 
SCHEER  up  to  78°  N,  40°  E.   From  there  on,  the  vessel  ie  to  change 
to  an  easterly  course  in  order  to  mine  a  large  area  bounded  by 


-293- 


CONFIDENTIAL 
24  Aug.  1942 

3.   Eastern  Front; 

89  enemy  planes  were  shot  down  on  the  Army  fronts.  In 
the  night  of  24  Aug.  21  Ju  88»s  attacked  Archangel.   Big  fires  were 
observed. 


VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation.  Mediterranean: 

In  the  night  of  23  Aug.  the  ILLUSTRIOUS-class  aircraft 
carrier  left  Gibraltar  with  4  destroyers  for  the  Atlantic.  Of 
the  large  warships,  the  CHARYBDIS  and  the  NIGERIA  are  still  in 
dock  in  Gibraltar.   In  the  afternoon  a  convoy  consisting  of  8 
steamers,  2  corvettes,  and  2  gunboats  entered  Gibraltar  from  the 
west.  According  to  an  intelligence  report  from  Spain,  an  un- 
identified warship  has  been  patrolling  the  waters  12  miles  off 
Cape  Tres  Forcas  since  0700. 

Submarines  were  sighted  off  Naples,  off  the  Strait  of  Otranto, 

and  off  the  African  coast  north  of  Has  el  Tin.   In  the  latter  case, 

the  purpose  might  have  been  to  reconnoiter  the  minefield. 

At  2130  air  reconnaissance  sighted  2  westbound  vessels,  probably 
destroyers,  about  40  miles  west -northwest  of  Alexandria.   At  1330 
radio  intelligence  intercepted  a  message  from  a  plane  reporting 
an  aerial  torpedo  attack  on  a  submarine  some  100  miles  north- 
northeast  of  Marsa  Matruh  without  any  observed  hit. 

2.  Own  Situation.  Mediterranean; 
Nothing  to  report. 

3.  Transport  of  Supplies  to  North  Africa; 

Transport  of  supplies  from  Italy  and  Greece  and  coastal 
traffic  proceeded  according  to  plan. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

No  incidents  occurred  during  the  convoy  and  mine-sweeping 
operations. 

The  tanker  ALBARO  was  unable  to  depart  from  Piraeus  for  the 
Dardanelles  because  of  rudder  damage. 

Black  Sea; 

Enemy  Situation: 

Air  reconnaissance  observed  5  steamers,  1  tanker,  and  a 
number  of  PT  boats  in  Tuapse  on  23  Aug.   In  the  Tamanskaya  Bay 
numerous  small  vessels  were  observed  in  north-south  shuttle  traffic. 
The  oruiser  KOMINTERN  and  1  destroyer  were  sighted  on  a  southerly 
oourse  in  the  Sukhum  area.   1  tanker  and  2  steamers  esoorted  by  1 
destroyer  and  2  patrol  vessels  were  seen  departing  from  Tuapse. 

-296- 


CONFIDENTIAL 
24  Aug.  1942  . 

Own  Situation; 

The  Italian  subchasers  which  were  sent  into  aotion  off 
Novorossisk  in  the  night  of  23  Aug.  sighted  no  enemy  vessels.  On 
22  Aug.  motor  mine  sweepers  swept  1  moored  mine  off  Mariupol. 

In  the  afternoon  of  23  Aug.  an  enemy  submarine  attacked  and  sank 
the  tug  ANKARA  from  the  southbound  convoy  off  the  Bessarabian  coast 
near  Cape  Burnas.   The  other  vessels  of  the  convoy  entered  Sulina 
toward  midnight.   The  anti-submarine  chase  undertaken  by  a  Rumanian 
gunboat  appears  to  have  been  successful.   Otherwise  convoy  opera- 
tions proceeded  as  planned.   4  landing  craft  are  en  route  from  Linz 
to  Sulina.  PTboat  S  "26"  is  proceeding  from  Linz  to  Galatz. 

5.   Special  Items: 

(1)  See  Telegrams  1035  and  1335  for  preparations  by 
Group  South  in  order  to  provide  a  port  commander  for  Astrakhan  and 
to  effect  a  prompt  transfer  of  naval  motor  boats  from  Azov  to  the 
Caspian  Sea,  as  well  as  for  measures  to  defend  Astrakhan  with 
coastal  artillery  and  river  mines. 

(2)  Group  South  points  out  that  since  mid-April  our 
submarines  have  been  making  a  much  more  extensive  use  of  the 
Salamis  base  than  originally  planned.   The  result  is  that  neither 
the  requirements  of  the  submarines  nor  the  repair  needs  of  the 
vessels  under  the.  Commanding  Admiral,  Aegean  Sea  can  be  met  in 

a  satisfactory  way.   This  situation  can  only  be  remedied  either 
by  restricting  the  demands  on  the  shipyard  to  one  vessel  at  a 
time  or  by  increasing  the  capacity  of  the  shipyard  to  an  extent 
whioh  would  meet  the  actual  needs.  Group  South  believes  that  the 
latter  alternative  would  be  more  in  line  with  the  actual  situation. 

The  Naval  Staff  Quartermaster  Division  will  take  care  of  the  matter, 

(3)  On  13  Aug.  the  Naval  Shore  Commander,  Crimea  re- 
ported on  the  progress  of  work  on  the  installation  of  batteries 

xof  the  601st  Naval  Coastal  Artillery  Battalion.  7  batteries  total- 
ling 21  guns  have  been  installed  in  Yalta,  Ivanbaba,  Genichesk, 
Feodosiya,  Ak  Mechet,  Komuna  Initsyativa,  and  Ak  Burnu.   The  two 
last-mentioned  batteries  were  emplaced  early  enough  to  participate 
effectively  in  the  artillery  attaok  by  all  German  coastal  batteries 
in  the  Kerch  Strait  area  on  8  Aug,  The  assignment  of  crews  for 
theBe  batteries  has  exhausted,  to  the  last  man  the  personnel  of 
the  Naval  Shore  Commander,  Crimea.  It  is  planned  to  install  4 
more  batteries,  i.e.,  battery  Cape  Kany  (north  of  Kerch),  battery 

\  Balaklava,  battery  "von  der  Goltz"  with  four  20.5  cm.  guns  on 
Xiape  Kherson  near  Sevastopol,  and  battery  Sevastopol  on  the  southern 
outlet  of  the  Severnaya  Bay. 


IX.   Situation  East  Asia 
Nothing  to  report. 


-297- 


CONFIDENTIAL 
24  Aug.    1942 

X.        Array  Situation 

1.    '    Russian  Front : 

Army  Group  A; 

The  Rumanian  3rd  Army  broke  the  last  enemy  resistance  in 
Temryuk  and  established  a  bridgehead  over  the  Kuban  River  west  of 
Temryuk.   The  western  group  of  the  V  Army  Corps  is  fighting  a  heavy 
battle  against  the  enemy's  intensified  defense  of  Novorossisk.   The 
hills  west  of  the  town  were  taken  in  bitter  hand-to-hand  fighting. 
Enemy  air  activity  over  the  entire  Army  area,  concentrating  on 
Novorossisk,  is  so  intense  that  our  artillery  is  at  times  forced 
to  cease  firing.   Enemy  troops  facing  the  XLIX  Mountain  Corps  were 
reinforced  south  of  the  Klydzh.   According  to  prisoner  statements, 
2  enemy  mountain  divisions  are  committed  to  the  defense  of  the  val- 
ley.  The  1st  Panzer  Army  extended  the  bridgehead  at  Baksan  and 
repelled  enemy  attacks  on  the  bridgehead  near  I.Iaisky.   The  3rd 
Panzer  Division  mopped  up  the  remaining  enemy  forces  at  Mozdok 
and  was  likewise  subjected  to  particularly  heavy  air  attacks.   The 
LII  Army  Corps  advanced  further  to  the  .southeast  without  encountering 
any  enemy  forces.   A  long-range  patrol  force  effectively  destroyed 
the  railroad  line  between  Astrakhan  and  Kill a  north  of  Rastolye. 

Army  Group  B: 

The  large-scale  attack  against  Stalingrad  is  being  car- 
ried on  despite  continued  stubborn  enemy  resistance.   The  enemy  is 
maintaining  strong  pressure  on  the  Italian  position  on  the  Don 
River,  with  the  result  that  the  left  wing  of  the  Ravenna  Division 
has  collapsed.   A  counterattack  is  under  way. 

Central  Army  Group: 

In  the  area  south  of  Sukhinichi  a  large-scale  enemy  attack 
launched  after  the  heaviest  artillery  preparation  collapsed  under 
an  especially  effective  attack  by  our  planes.   East  of  Vyazma,  the 
enemy  succeeded  in  penetrating  deep  into  the  position  of  the  292nd 
Infantry  Division  after  several  of  his  previous  attacks  had  been 
repulsed. 

Particularly  heavy  fighting  developed  in  the  course  of  the  battle 
near  Rzhev.   After  a  period  of  quiet,  the  Russian  30th  and  31st 
Armies  opened  a  heavy  barrage  the  like  of  which  has  never  before 
been  experienced.   This  was  followed  by  attacks  on  our  positions 
near  Zubtsov,  and  north  of  Rzhev  v/ith  superior  tank  and  infantry 
forces  proceeding  in  tightly  closed  columns  under  strong  air  sup-- 
port.   The  enemy  penetrated  into  our  lines  at  several  points.   After 
bringing  up  every  available  reserve,  our  forces  launched  a  counter- 
attack.  The  heavy  battle  is  still  in  progress. 

Northern  Army  Group; 

South  of  Staraya  Russa  our  troops  repelled  tank- supported 
enemy  attacks  launched  0  times  in  succession.   New  attacks  on 
Byelibor  were  likewise  beaten  off.   Southeast  of  Leningrad  the 
enemy  forced  our  troops  to  withdraw  their  front. 


-298- 


CONFIDENTIAL 
24  Aug.    1942 

2.  Finnish  Front: 

Lively  enemy  patrol  and  assault  troop  activity  was  re- 
ported from  all  fronts. 

3.  North  Africa: 

No  noteworthy  reports  have  been  received. 

ft************************ 


-299- 


CONFIDENTIAL 
25  Aug.  1942 

Items  of  Political  Importance 

Brazil's  entry  into  the  war:   Brazil's  note  to  Germany  will  not 
proclaim  actual  warfare  between  the  two  countries  but  merely  the 
existence  of  a  state  of  war;  this  is  meant  to  indicate  that  Brazil 
wants  to  wage  a  defensive  war  only. 

Subtle  differentiations  of  this  sort  can,  of  course, 
not  alter  the  fact  that  an  unrestricted  state  of  war 
actually  exists. 

A  special  meeting  of  the  military  representatives  of  the  21  Ameri- 
can Republics  on  the  Pan  American  Defense  Committee  accepted  a  reso- 
lution sponsored  by  Ecuador  which  expressed  solidarity  with  Brazil. 
In  this  connection,  the  Chilean;  representative  deolared  that  his 
country  could  not  remain  silent'  or  indifferent  toward  the  destruc- 
tion of  Brazilian  ships  and  would  continue  its  loyal  and  effective 
support  of  the  policy  of  continental  solidarity. 

In  accordance  with  the  stipulations  of  the  Rio  Conference  of  Febru- 
ary 1942,  so  far  Uruguay,  Peru,  Argentina,  and  Chile  have  announced 
that  they  consider  Brazil  non-belligerent. 

In  connection  with  the  Moscow  conferences  it  is  learned  from 
diplomatic  sources  that  General  Voroshilov  has  been  named  Com- 
mander in  Chief  of  the  Caucasian  front  on  the  basis  of  the  talks 
betv/een  Churchill  and  Stalin.   Turkish  diplomatic  circles,  which 
are  the  source  of  this  report,  believe  that  the  Moscow  conferences 
were  concerned  chiefly  with  Anglo-American  aid  for  the  Caucasus 
front  and  with  the  establishment  of  a  front  in  the  Near  East. 

Churchill  returned  to  London  on  24  Aug.   In  view  of  the  secrecy 
surrounding  all  matters  connected  with  the  visit  to  Moscow,  the 
Dally  Herald  voices  a  vigorous  protest  against  Churchill's  secret 
policies. 

France: 

Marshal  Petain  commented  enthusiastically  to  a  German  diplomat  on 
the  successful  defense  of  Dieppe  and  also  predicted  a  very  favor- 
able development  of  the  war.   He  does  not  doubt  that  the  German 
Army  will  reach  Baku  and  the  mouth  of  the  Volga  River  and  thus 
achieve  victory  over  the  Soviet  Union,  although  the  capture  of  the 
Caucasus  might  meet  with  major  difficulties.   Great  Britain  can  be 
conquered  only  by  an  invasion  of  the  British  Isles.   If  this 
happens,  the  U.S.A.  will  withdraw  from  England  and  will  no  longer 
be  interested  in  a  continuation  of  the  war. 

In  Darlan's  opinion  the  British  may  make  similar  landing  attempts, 
possibly  even  on  a  larger  scale,  during  the  fall.   In  the  east, 
however,  the  fate  of  the  Soviets  will  be  sealed  by  the  capture  of 
Stalingrad  and  the  seizure  of  the  Volga  mouth.   In  the  Caucasus, 
Germany  must  be  prepared  for  the  intervention  of  Anglo-American 
forces.   Suez  represents  the  key  position  of  enemy  operations  and 
of  the  collapsing  British  Empire;  its  capture  is  therefore  of  de- 
cisive importance  for  Germany. 


-300- 


CONFIDENTIAL 


25  Au 


Portugal: 

The  German  Minister  reports  from  Lisbon  that  British  propaganda  is 
beginning  to  take  effect  against  Salazar  due  to  the  growing  dissat- 
isfaction of  labor  circles  caused  by  economic  tension. 

Reports  from  consulates  of  neutral  countries  assyrt  unanimously  that 
communist  activities  have  greatly  increase''  in  d  If ferent  parts  of 
the  U.S.A.,  for  instance  "in  Virginia.   For  details  see  Political 
Review  No.  19G,  paragraph  7a. 


Conference  on  the  Situation  with  the  Chief ,  Naval  Staff 

I.    The  Chief,  Naval  Staff  Communications  Division  reports  that  the 
"Kirschbluete"  has  taken  45  cases  of  communications  equipment  back 
to  Japan.   The  appreciable  quantity  of  shellac  and  mica  brought  by 
the  submarine  upon  German  request  will  be  very  useful  for  the  con- 
struction of-  such  equipment  in  Germany.   The  Chief,  Naval  Staff 
orders  that  these  supplies  of  scarce  material  be  stored  by  the  Navy, 
with  the  provision  that  the  most  urgent  requirements  of  other 
branches  of  the  Armed  Forces  are  to  be  satisfied. 


II.  The  Chief,  Naval  Staff  Quartermaster  Division  reports  that  the 
Naval  Construction  Division  has  suggested  that  the  French  cruiser  DE 
GRASSE,  now  in  an  unfinished  condition  at  St.  Nazaire,  be  completed 
as  an  aircraft  carrier.   The  ship  is  particularly  suitable  for  this 
purpose  on  account  of  her  design  and  her  high  speed.   The  Chief,  Na- 
val Staff  orders  that  first  of  all  the  practical  aspects  be  investi- 
gated. 

III.  The  Chief,  Naval  Staff  Quartermaster  Division  further  reports 
on  the  progress  made  with  the  new  Norwegian  batteries.   On  this 
occasion  he  rejects  the  unjustified  reproach  of  the  General  of  the 
Engineers,  Norway  that  the  heavy  batteries  are  insufficiently  pro- 
tected.  The  Chief,  Naval  Staff  orders  that  the  Fuehrer  be  informed 
at  the  next  opportunity  about  this  matter. 

IV.  The  Chief,  Foreign  Affairs  Section,  Naval  Staff  Operations  Di- 
vision reports  on  the  Japanese  refusal  to  accept  the  war  prisoners 
taken  by  German  auxiliary  cruisers  prior  to  an  agreement  regarding 
the  cost.   The  Naval  Staff's  standpoint  is  that  this  matter  has  to 
be  settled  somehow  by  the  Foreign  Office.   The  Naval  Staff  must  in- 
sist that  the  war  prisoners  be  taken  over  in  every  case  without 
delay. 

In  a  Very  Restricted  Circle: 

V.  The  Chief,  Naval  Staff  Operations  Division  reports  on  the 
account  of  the  German  Admiral  at  Rome  concerning  his  relations  with 
the  Commanding  General,  Armed  Forces,  South;  the  latter  arranged 
with  General  Cavalloro  the  organization  of  an  A_ir  Force  Liaison 
Staff  of  3  members  attached  to  the  Italian  Admiralty  without  notify- 
ing the  German  Admiral,   When  the  German  Admiral,  Rome  protested, 
Field  Marshal  Kesselring  agreed  to  comply  with  the  demand  that  the 
Liaison  Staff  be  placed  under  the  authority  of  the  German  Naval 


-501- 


CONFIDENTIAL 
25  Aug.  1942 

Command,  Italy  on  condition  that  the  Navy  assigns  a  qualified  Ad- 
miral Staff  Officer  exclusively'  to  the  Liaison  Staff,    Since  the 
Italian  Admiralty  feels  it  must  comply  v/ith  the  directive  of  the 
Italian  High  Command,  the  Naval  Staff  believes  that  the  stipula- 
tion will  have  to  be  met.   The  Chief,  Naval  Staff  shares  this 
opinion  and  deplores  the  fact  that  the  German  Admiral  and  his  Chief 
of  Staff  were  not  able  to  avoid  this  clash  with  the  Commanding 
General,  Armed  Forces,  "South.   He  orders  that  the  name  of  a  candi- 
date suitable  for  the  assignment  be  submitted. 

The  Chief,  Naval  Staff  Operations  Division  also  reports  that  Field 
Marshal  Rommel  .  was  taken  sick  so  that  he  may  not  be  able  to  con- 
tinue in  command. 

His  absence  just  at  this  time  would  leave  a  gap 
very  hard  to  fill. 


Special  Item 

The  Commander  in  Chief,  Navy  appointed  the  Chief,  Naval  Staff  Com- 
munications Division,  as  his  special  deputy  for  radar  and  anti- 
radar  for  the  entire  Navy. 

For  the  directive  M  562/42  of  the  Commander  in  Chief,  Navy  see 
l/Skl  20585/42  Gkdos.  in  War  Diary,  Part  B,  Vol.  V. 


Situation  25  Aun.  1042 

I.   War  in  Foreign  Waters 

1.    Enemy  Situation; 

North  Atlantic : 

According  to  an  intelligence  report  from  Portugal,  15 
British  steamers  unexpectedly  had  to  unload  their  cargoes  destined 
for  England  at  Gibraltar  and  to  proceed  empty  to  Freetown.  3  ships 
at  Lisbon  received  a  similar  order.. 

South  Atlantic : 

A  badly  garbled  message  of  the  Roar  Admiral  at  Freetown  of 
5  Aug.  reveals  a  British  belief  that  submarines  and  not  a  German 
auxiliary  cruiser  are  operating  in  a  certain  area  which  could  not  be 
made  out.   The  submarines  are  assumed  to  be  cooperating  v/ith  a 
supply  ship  located  south  of  Las  Palmas.   This  communication  is  con- 
nected v/ith  the  reports  caused  by  the  appearance  of  ship  "28"  in 
the  Gulf  of  Guinea. 

Indian  Ocean: 

Radio  monitoring  intercepted  in  the  East  Indian  area 
several  urgent  operational  radio  messages  flashed  from  the  British 
Isles  to  Colombo.   On  23  Aug.  a  submarine  warning  was  broadcast 
for  the  area  80  miles  north  of  Ceylon. 

-302- 


CONFIDENTIAL 
25  Aug.  1942 

2,   "Own  Situation: 

The  operations  of  our  auxiliary  cruisers  overseas  showed 
the  following  results  for  the  summer  period: 

Ship  "28":  9  vessels  totalling  60,262  GRT 

ShJ.p  "10":  10  vessels  totalling  56,037  GRT 

Ship  "23":  4  vessels  totalling  22,000  GRT 

DOGGERBANK:  3  vessels  totalling  16,667  GRT 

Total:  26  vessels  totalling  154,966  GRT 

Not  included  in  these  figures  are  3  ships  of  21,000  GRT  and  the  de- 
stroyer tender  HECLA  which  struck  mines  in  the  Doggerbank  minefields, 
but  the  sinking  of  which  was  not  confirmed. 

Mainly  for  its  psychological  effect  on  the  crews  of  the  auxiliary 
cruisers  the  Naval  Staff  proposes  that  the  following  be  inserted 
into  the  communique  of  the  Armed  Forces  High  Command  or  released 
as  a  special  communique: 

"German  auxiliary  cruisers  operating  overseas  accounted  for  26  ships 
totalling  154,966  GRT  during  the  summer  1942." 

The  Naval  Attache  at  Tokyo  transmits  the  last  part  of  the  excerpt 
from  the  log  of  ship  "28"  ending  on  25  Jun.   The  entries  deal. with 
experiences  with  the  shipborne  plane  and  contain  also  a  demand  for 
the  enlargement  of  the  deep  freeze  units. 

The  Japanese  Liaison  Officer  communicates  that  the  Japanese  are 
planning  naval  operations  in  the  Indian  Ocean  and  he  therefore  re- 
quests that  the  operations  zone  of  German  auxiliary  cruisers  be 
limited  between  10  Sep.  and  the  end  of  the  year  to  an  area  de- 
fined by  the  following  points : 

a.  35°  S,  60°  E;  30°  S,  70°  Ejj  30°  S,  100°  E;  50°  S,  100°  Ej 
50O  S,60°  E. 

b.  West  of  60°  E  and  south  of  40°  S. 

Should  still  larger  Japanese  operations  develop  in  the  Indian  Ocean 
area,  the  Japanese  Admiralty  would  request  a  further  reduction  of 
this  zone,  though  this  would  be  only  temporary.   The  Japanese  Navy 
claims  all  the  rest  of  the  Indian  Ocean  as  far  as  Capetown  for  its 
operations. 

The  Liaison  Officer  reported  also  having  learned  from  a  conversa- 
tion with  the  captain  of  the  "Kirschbluete"  that  Japanese  cruisers 
and  destroyers  probably  made  an  unsuccessful  advance  beyond  the 
Cocos  Islands  in  a  southwesterly  direction. 

The  Liaison  Officer  further  reported  in  strictest  confidence  that 

the  Italians  had  approached  the  Japanese  with  a  plan  to  operate 

a  submarine  in  South  African  waters;  the  Japanese,  however,  refused. 

Enemy  situation  report  by  Radiogram  0312. 


-303- 


CONFIDENTIAL 
25  Aug.  1942 

II.   Situation  West  Area 

1«    Enemy  Situation; 

The  investigation  of  reports  from  Italian  sources  about 
British  plans  for  landings  in  southern  Prance  and  northern  Spain, 
which  v/as  conducted  by  our  Armed  Forces  Intelligence  Service  in 
Spain,  proved  completely  negative.   The  Intelligence  Service  does 
not  believe  in  the  probability  of  an  operation  at  the  northern 
Spanish  coast. 

The  Naval  Attache  &-t   Lisbon  reports  unconfirmed  rumors  about  a 
British  intention  to  stage  -further  raids  on  the  French  coast. 

The  Naval  Attache  at  Buenos  Aires  transmits  information  originat- 
ing from  captains  of  British  ships;  according  to  them  Scotland, 
particularly  Glasgow,  is  the  center  of  British  military  activities, 
not  London.    The  captains  believe  that  Headquarters  of  the  British 
Admiralty  and  of  the  Royal  Air  Force  are  in  Glasgow.  'About  6  weeks 
ago  a  few  thousand  so  called  invasion  barges  are  said  to  have  been 
transferred  from  Scottish  to  southern  English' harbors,  mostly  to 
Eastbourne  and  other  places  near  Plymouth.   Also  special  Diesel 
tugboats  were  transferred  at  the  same  time.   Each  tug  tows  5  or  6 
barges  which  have  small  motors  themselves.   The  captains  figure 
that  major  operations  will  take  place  as  soon  as  the  autumnal  fogs 
set  in. 

2.    Own  Situation; 

Atlantic  Coast: 

The  roadstead  of  La  Pallice  v/as  closed  on  account  of 
suspected  mines.  A  ground  mine  v/as  swept  in  Quiberon  Bay. 

With  reference  to  Group  West's  demand  for  regular  strong  escorts 
of  outgoing  blockade-runners  as  far  as  18°  W  (see  War  Diary  21 
Aug.),  the  3rd  Air  Force  replied  that  the  momentary  weakness  of  the 
forces  at  its  disposal  does  not  permit  the  assignment  of  the  de- 
sired number  of  escorts. 

Channel  Coast; 

PT  boats  S  "78'*  and  S  "115"  transferred  to  Rotterdam 
according  to  plan.   The  2nd  and  4th  PT  Boat  Flotillas  were  en- 
gaged by  enemy  destroyers  while  and  after  executing  their  mine- 
laying  assignments;  the  missions"  were  carried  out.  For  short  re- 
ports of  the  flotillas  see  Telegrams  1005  and  1055. 


III.  North  Sea,  Norway,  Arctic  Ocean 
1.   North  Sea: 

Enemy  Situation; 

The  British  Admiralty  announces  an  attack  on  4  German 

-304- 


CONFIDENTIAL 


25  Aug.  1942 


anti-aircraft  ships  by  British  PT  boats  which  took  place  in  the 
evening  of  24  Aug.  off  Flushing;  one  of  the  German  ships  was  hit 
by  a  torpedo  and  sank. 

Own  Situation: 

Patrol  boats  "1304",  "1309",  "1310",  and  "2008"  had  a 
brush  with  British  motor  gunboats  In  quadrant  AIT  8738  lasting 
from  midnight  to  0227.   2  .enemy  motor  gunboats  were  reported  sunk. 
Our  vessels  dodged  3  enemy  torpedoes.   Our  casualties  consist  of  a 
few  wounded;  the  vessels  suffered  no  damage.   For  battle  report  see 
Telegram  2140. 

Mine-sweeping  planes  swept  2  and  mine-exploding  vessels  4  ground 
mines. 

Special  mission  "Fuenfte  Kolonne"  was  carried  out  according  to 
plan.   2  more  mines  were  swept  on  the  approach  routes.  Convoy  and 
patrol  service! _'_  proceeded  on  schedule. 


2. 


Norway  and  Arctic  Ocean: 

§ 
Enemy  Situation: 

Air  reconnaissance  sighted  5  medium-sized  steamers,  1 
destroyer,  and  2  patrol  vessels  off  Archangel  which  proceeded  on  a 
southeasterly  course  in  the  western  channel;  also  2  single  ships 
were  spotted.   On  24  Aug.  4  destroyers,  2  of  them  under  construc- 
tion, 5  escort  vessels,  and  28  steamers  were  observed  at  Archangel, 
while  4  escort  vessels  and  5  steamers  were  spotted  outside  the 
harbor. 

60  to  70  fishing  vessels  were  sighted  north  of  Iceland. 

Own  Situation: 

During  the  afternoon  of  24  Aug.  an  eastbound  convoy 
was  attacked  with  2  torpedoes  by  an  enemy  submarine  south  of  • 
Kiberg;  both  torpedoes  missed.   During  a  subsequent  subchase  the 
submarine  was  probably  destroyed  on  25  Aug. 

A  Russian  battery  on  the  Rybachi  Peninsula  fired  on  an  eastbound 
convoy  and  on  the  Petsamo  harbor  area  on  24  Aug.  without  causing 
damage • 

The  submarine  chase  on  the  west  coast  was  continued  in  quadrant 
AN  3167.   Enemy  planes  operated  over  the  north  and  west  coast 
during  the  day  and  the  night  of  24  Aug.   Convoy  service  proceeded 
uneventfully. 

The  Commanding  Admiral,  Fleet  and  his  staff  aboard  the  HELA 
transferred  temporarily  on  26  Aug.  to  Germany.   The  Commanding 
Admiral,  Cruisers  as  ranking  naval  commander  in  the  north  area 
takes  his  place  in  the  meantime.   (See  Telegram  1520.) 


-305- 


CONFIDENTIAL 


25  Au~.  1942 


As  reported  by  the  Commanding  Admiral,  Norway,  the  construction 
of  an  anchorage  for  large  vessels  at  the  eastern  shore  of  Kaa 
Fjord  would  not  serve  the  purpose,  because  anti-torpedo  nets  do 
not  stand  up  in  the  rough  waters  there.  Investigation  is  under 
way  as  to  whether  the  anchorage  could  be  shifted  to  the  western 
shore. 

Submarines  U  "255'*  and  U  "456"  are  reconnoitering  the  area  to  be 
mined  in  operation  "Zar". 

Submarine  U  "435"  picked  up  the  "Knospe"  expedition  and  is  return- 
ing to  Narvik.   The  boat  found  the  area  north  of  Spitsbergen  ab- 
solutely free  of  ice. 

Results  of  air  reconnaissance  in  the  Archangel  area  (see  Aerial 
Warfare)  are  transmitted  to  the  participants  of  operations 
"Wunderland"  and  "Zar"  by  the  Admiral,  Arctic  Ocean. 

En  route  to  operation  "Zar"  mine  layers  were  reported  by  submarine 
U  "488"  in  quadrant  AD  9835  as  "unidentified  ships".   Beyond  any 
doubt  a  case  of  dangerous  neglect  to  inform  ships  at  sea  adequately, 

Nothing  has.  yet  been  heard  from  operation  "\7  under  land". 


IV.   Sk^errak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.   Enemy  Situation: 

Finnish  reconnaissance  reports  sighting  gunboat  KRASNOYE 
SNAMYA  on  24  Aug.  in  the  northern  bay  of  Lavansaari. 


2. 


Own  Situation: 


The  German  steamer  PETER  VON  DANZIG  (850  GRT),  carrying 
a  cargo  of  gravel  struck  a  mine  off  Samsoe  and  sank.   This  in- 
dicates the  presence  of  mines  with  time  delay  mechanism,  since 
this  route  is  checked  frequently,   ^he  same  applies  to  the  mine 
struck  by  the  transport  V/URI.   As  a  consequence  of  this  loss  and 
the  experiences  had  on  the  occasion,  Group  North  requested  the 
Shipping  and  Transport  Branch  of  the  Naval  Staff  Quartermaster 
Division  to  set  up  an  organization  which  would  permit  quick  iden- 
tification of  personnel  involved  in  accidents  of  troop  transports. 

Ground  mines  were  swept  near  the  spot  where  the  PETER  VON  DANZIG 
sank. 

Nothing  to  report  from  the  area  of  the  Commander,  Mine  Sweepers, 
Baltic  Sea. 


-306- 


CONFIDENTIAL 
25  Aug.    1942 


-■i_>  i 


V^       Submarine  Warfare 

1,  Enemy  Situation; 

Air  reconnaissance  intercepted  an  RRR  signal  of  the 
Norwegian  steamer  WASHINGTON  EXPRESS  (3,543)  from  approximately 
480  miles  southeast  of  Newfoundland. 

2.  Own  Situation: 

8  submarines  en  route  from  Germany  are  combined  to  form 
group  "Vorwaerts"  in  the  North  Atlantic  and  are  ordered  to  assume 
positions  on  a  patrol  line  extending  from  quadrants  AK  3765  to 
AK  6629.   The  group  will  operate  against  convoys  from  the  British 
Isles  to  America. 

Bad  weather  forced  abandonment  of  operations  against  the  convoy 
in  quadrant  BD.   The  results  achieved  so  far  consist  of: 

A  7,000  GRT  steamer  sunk  and  2  steamers  of  6,000  GRT  and  3,000  GRT 
torpedoed  by  submarine  U  "138". 

A  6,000  GRT  steamer  torpedoed  by  submarine  U  "176"  and  a  medium- 
sized  steamer  probably  sunk  by  U  "605". 

In  adjacent  waters  a  single  steamer  of  12,000  GRT  w as  sunk   in 
quadrant  AK  9454  by  submarine  U  "604". 

The  boats  operating  on  the  U.S.  east  coast  had  no  successes  to 
report.  Group  "Bluecher"  spotted  a  convoy  probably  convoy  SL, 
In  quadrant  DH  1543  and  is  now  operating  against  it. 

In  the  area  off  Freetown  submarine  U  "130"  sank  steamer  VIKING 
STAR  (6,445  GRT)  in  quadrant  ET  6446. 

For  further  reports  see  supplement  to  submarine  situation  in 
War  Diary,  Part  B,  Vol.  IV. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

A  few  of  our  planes  made  nuisance  raids  on  coastal 
places  during  25  May  and  the  following  night. 

The  enemy  penetrated  during  the  day  into  Germany  and  damaged 
several  industrial  plants  in  the  Cologne  district. 

2.  Mediterranean  Theater; 

Nothing  to  report. 
\ 

-307- 


CONFIDENTIAL 


25  Aug.  1942 


3.    Eastern  Front! 

In  2,787  sorties  we  lost  5  planes  and  shot  down  100 
enemy  planes.  Reconnaissance  flights  in  the  Black  Sea  and  the 
Caspian  Sea.   In  the  Arctic  Ocean  the  Varlamovo  airfield  was 
attacked  by  14  Ju  88' s  with  observed  good  results. 

Special  Items: 

In  view  of  the  expected  commissioning  of  aircraft  carriers  the 
Air  Force  General  attached  to  the  Nerval  High  Command  has  ordered 
the  organization  of  the  necessary  units.   For  the  GRAF  ZEPPELIN 
a  group  staff  with  3  multi-purpose  groups,  2  carrier-borne 
fighter  groups  including  torpedo  planes,  and  .a  ship-based  air 
command  is  to  be  organized  by  1  Mar.  1943;  a  replacement  group 
with  group  staff,  one  multi-purpose  squadron,  and  one  fighter 
squadron  is  to  be  organized  by  1  May  1943. 

Considering  that  this  is  a  new  field  as  far  as  the  Air  Force  is 
concerned  and  that  it  is  necessary  to  channel  all  experiences 
gathered  by  the  carrier-borne  air  forces  to  a  single  agency, 
evaluate  such  information,  and  send  it  directly  to  the  zones  of 
operation,  it  has  been  suggested  that  the  office  of  an  advanced 
training  commander  for  carrier-borne  forces  be  created  at  the 
Air  Force  Operations  Staff. 


VII.  V/arfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation,  Mediterranean: 

The  Italian  Consul  at  Oporto  sent  an  agent  report  ac- 
cording to  which  extraordinary  military  activity  is  going  on  at 
Gibraltar,  which  seems  to  indicate  that  the  British  plan  a  land- 
ing at  an  undisclosed  place.   The  date  named  for  this  operation 
v/as  26  Aug'.   This  report  evidently  originates  at  the  sar.e  source 
as  the  one  reported  on  24  Aug.  by  the  Italian  Naval  Intelligence 
Division.   (See  War  Diary  24  Aug.) 

The  German  Naval  Command,  Italy  takes  the  following  stand* 

"Although  it  must  be  expected  that  the  British  are  planning  op- 
erations which  are  motivated  by  military  considerations  alone, 
the  operation  mentioned  is  considered  very  unlikely  because  It 
lacks  a  strategic  goal  and  because  its  political  repercussions, 
particularly  in  the  event  of  a  failure,  would  be  too  grave." 

This  conclusion  conforms  to  the  opinion  of  the  Naval  Staff  as  ex- 
pressed on  24  Aug. 

According  to  an  intelligence  report  from  Spain,  a  Spanish  steamer 
reported  sighting  an  aircraft  carrier  and  7  destroyers  at  36°  ILy 
7°  W  proceeding  on  a  southerly  course  and  16  steamers  headed  for 


-308- 


CONFIDENTIAL 
25  Aug.  1942 

the  Strait  of  Gibraltar  at  0900  of  24  Aug.   This  evidently  re- 
fers to  the  aircraft  carrier  which  sailed  from  Gibraltar  during 
the  night  of  23  Aug.  and  to  the  convoy  which  arrived  there  in  the 
afternoon  of  the  same  day,  although  only  8  incoming  steamers  were 
reported. 

Prom  another  intelligence  report  from  Spain  it  is  learned  that 
lively  air  activity  was  observed  on  25  Aug.  over  the  Portuguese 
south  coast  and  extending  as  far  as  Gibraltar. 

No  other  news  of  importance  was  received  from  the  entire  Mediter- 
ranean. 

2.  Own  Situation,  Mediterranean; 

Enemy  planes  attacked  Marsa  Matruh,  Tobruk  and  the  harbor 
of  Corfu  in  the  evening  and  during  the  night  of  24  Aug. 

3.  Transport  of  Supplies  to  North  Africa: 

Supply  transport  from  Italy  and  Greece  to  North  Africa 
and  North  African  coastal  traffic  proceeded  according  to  plan 
and  without  major  incident. 

* 

Volume  of  goods  unloaded  at  Tobruk  on  23  Aug.  amounted  to  544  tons, 
on  24  Aug.  1,045  tons;  at  Marsa  Matruh  307  tons  on  23  Aug.  and  245 
tons  on  24  Aug. 

4 

4.  Area  Naval  Group  South; 

Aegean  Sea; 

Tanker  CELEN0  had  to  put  into  Mudros  harbor  on  the 
Way  to  the  Dardanelles  on  account  of  engine  trouble.   Otherwise 
supply  transports  and  convoys  in  the  Aegean  Sea  proceeded  ac- 
cording to  plan. 

The  Admiral,  Aegean  Sea  requests  urgently  that  the  number  of  • 
Spanish  steamers  be  augmented,  since  they  proved  v,ery  useful  for 
Crete  shipping  and  are  safe  from  submarines.   Group  South  supports 
this  proposition  urgently. 

The  matter  will  be  taken  up  by  the  Shipping  and  Transport  Branch 
of  the  Naval  Staff  Quartermaster  Division*. 

Black  Sea: 

Enemy  Situation: 

Lively  submarine  activity  was  observed  by  radio  monitor- 
ing; altogether  21  submarines  were  located,  8  of  them  in  the 
western  Black  Sea.  The  Fleet  Commander  was  at  sea  in  the  Batum 
area  at  noon.   Air  reconnaissance  established  in  the  morning  of 
25  Aug.  that  2  more  steamers  had  entered  Novorossisk  and  also 
sighted  a  convoy  sailing  from  Tuapse  in  a  southeasterly  direction. 


-309- 


CONFIDENTIAL 
25  Au/t.  1942 


According  to  the  Naval  Attache  at  Istanbul,  a  well-informed  source 
reports  that  great  quantities  of  provisions,  ammunition  and  fuel 
are  stored  at  Batum  to  supply  the  Russian  fleet  in  the  event  that 
the  Caucasian  ports  must  be  evacuated, 

Ovvn  Situation: 

The  fact  that  17  Russian  mines  and  cutter  floats  were 
swept  by  the  Crimean^  minesweeper  detachment  proves  that  the  closed 
area  west  of  Sevastopol  was  Sriined.   A  mine-sweeping  plane  swept  2 
mines  off  Yeisk.   3  anti-torpedo  barrages  were  laid  off  Ivanbaba. 
Supply  transport  and  convoy  shipping  proceeded  according  to  plan 
without  major  incidents. 

Submarine  DELFINUL  is  to  be  ready  for  operations  by  1  Sep. 


VIII.  Situation  East  Asia 

The  Naval  Attache  at  Tokyo  reports  the  situation  in  the 
Solomon  Islands  unchanged.   Enemy  supply  operations  which  were 
carried  out  at  first  only  by  submarines   are  now  executed  by 
destroyers  and  steamers,  too.   An  enemy  destroyer  was  sunk  on 
22  Aug.  by  Japanese  destroyers  which  penetrated  into  Lungarodo 
Bay. 

At  1430  on  24  Aug.  an  enemy  force  consisting  of  1  battleship, 
2  aircraft  carriers  or  auxiliary  carriers,  6  cruisers,  and  12 
destroyers  v/as  attacked  by  Japanese  carrier-borne  planes  south- 
east of  the  Steward  Islands.   Fires  were  observed  on  both  air- 
craft carriers,  which  are  of  a  type  unknown  thus  far  to  the 
Japanese  Navy.   The  Japanese  allegedly  suffered  no  losses. 


IX.  Army  Situation 

1.    Russian  Front; 

Army  Group  A: 

The  3rd  Rumanian  Army  captured  the  peninsula  west  of 
Temryuk.  A  Rumanian  cavalry  division,  advancing  in  a  southerly 
direction,  crossed  the  Kuban  River  at  Protskaya.  The  enemy  at- 
tacked the  spearheads  of  our  advancing  V  Army  Corps  and  was  re- 
pulsed in  bitter  hand-to-hand  fighting.  Southwest  and  south  of 
Krasnodar  enemy  counterattacks  launched  from  the  mountains  were 
also  repulsed.  Our  operations  in  the  mountains  are  progressing 
steadily  against  occasionally  stubborn  enemy  resistance. 

Army  Group  B: 

The  battle  for  Stalingrad  continues.  At  the  juncture 
of  the  Khoper  and  Don  Rivers  the  western  flank  of  the  XVII  Army 
Corps  suffered  a  setback  due  to  further  withdrawal  of  the  Italian 

-310- 


( 


> 


CONFIDENTIAL 
25  Aug.  1942 

forces.   Our  reserves  have  been  thrown  into  battle. 

Central  Army  Group: 

All  enemy  attacks  In  the  area  south  'of  Sukhinichl  were 
repulsed,  partly  through  counterattacks.  We  succeeded  In  hold- 
ing—our  positions  in  the  Rzhev  area.  Enemy  preparations  for  re- 
newing his  attacks  were  dispersed  by  artillery  fire. 

Northern  Army  Group: 

Enemy  attacks  southeast  of  Schluesselburg  and  south  of 
Leningrad  were  smashed  before  they  could  get  under  way. 

2»   Finnish  and  North  African  Fronts: 

Nothing  to  report. 


> 


-311- 


CONFIDENTIAL 
26   Aug.    19l|2 

Items    of    Political  Importance 

Concerning  the  Shipping  Problem; 

The  Times  •  published  a  survey  of  submarine  warfare  in  the  western 
Atlantic  and  particularly  off  the  North  American  coast,  stating 
that  the  ships  sunk  still  exceed  those  newly  built.   This  should 
Impress  the  Allies' with  the  fact   that  the  battle  of  the  Atlantic 
is  one  of  the  vital  ope  rati  dni  of  the  war. 

Great  Britain; 

On  22  Aug.  Churchill  declared  in  a  press  conference  at  Cairo 
that  Great  Britain  is  determined  to  fight  for  Egypt  and  the 
Nile  River  estuary  as  if  they  were  England's  own  soil. 

Efforts  of  British  trade  union  leaders  to  merge  American,  British 
and  Russian  unions  and  labor  organizations  failed  completely. 
For  details  see  Political  Review  No.  199,  paragraph  3c 

U.S.A.; 

Reuter  reports  from  Washington  that  a  new  Lend  Lease  Agreement 
between  the  U.S.A.  and  Great  Britain  is  about  to  be  announced. 
Corresponding  agreements  with  Australia  and  New  Zealand  are  in 
preparation.  A  new  agreement  had  to  be  drawn  up  because  U.S.A. 
forces  in  British  territories  must  be  supplied. 

Roosevelt  invited  the  Prime  Ministers  of  South  Africa  and  Australia 
to  Washington. 

According  to  a  diplomatic  report  based  on  the  travel  impressions 
gained  by  a  neutral  authoritative  source,  the  personal  advisers 
to  the  President  are  playing  the  most  important  role  in  the  U.S.A. 
next  to  Roosevelt.  These  men  have  dictatorial  powers  over  the 
matters  under  their  control.  Hatred  of  Japan,  enemy  no.  1,  is 
said  to  be  beyond  description  and  ineradicable.  Germany  merely 
has  to  be  cured  of  her  pathological  craze  for  conquest.  In  order 
to  crush  Japan,  the  war  in  Europe  must  first  te  finished  by 
exploiting  the  full  war  potential.  Economically  the  country  is 
going  through  a  tremendous  boom  period. 

Uruguay; 

According  to  Reuter,  the  Government  denied  that  Uruguayan 
planes  participated  in  an  attack  on  Axis  submarines  as  was 
reported  from  Rio. 

Russia ; 

According  to  the  German  Legation  at  Helsinki  the  Finnish  envoy 
to  the  Vatican  transmitted  the  following  views  of  his  Japanese 
colleague; 

1.  Russia's    offensive   power   is   broken. 

2.  The  war   in  Russia  will  end  during   the  month  of    October  with- 
out  a  formal  peace. 

3.  The  U.S.A.    is    Japan's   enemy  no.    1  and  all   forces   must  be 
concentrated  against  her. 

-312- 


CONFIDENTIAL 


26  Aug.    I9I+2 


I4..   Japan  can  aaalat  her  allies  solely  by  harassing  enemy 
supply  traffic* 

5.  The  U.S.A.  will  concentrate  her  forces  on  Germany  first,  ' 
and  will  attack  Japan  only  in  19^5  • 

6.  Japan  is  not  interested  in  a  prolonged  European  war. 

The  Finnish  Envoy  concluded  that  the  Japanese  Envoy  wanted  to 
make  him  understand  that  a  Japanese  offensive  against  Russia 
is  not  imminent. 

The  fact  that  points  3  and  5  coincide  with  the 
views  expressed  in  the  previously  mentioned 
diplomatic  report  about  the  U.S.A.  is  noteworthy. 

According  to  reports  from  military  circles  in  London,  General 
Auchlnleck  will  become  Commander  in  Chief  of  an  Anglo-American 
Army  which  will  operate  jointly  with  the  Russians  in  the 
Caucasus.  The  principal  objects  of  the  Allied  Forces  in  Iran 
and  Iraq  under  General  Wilson  are  to  protect  the  supply  routes 
to  the  Russian  Caucasus  Army  and  to  organize  the  British  and 
U.S.  defense  south  of  the  Caucasus. 

Turkey; 

According  to  the  official  German  News  Agency  (DNB),  the  President 
emphasized  In  a  speech  the  cautious  Turkish  attitude  toward  < 
both  of  the  belligerent  parties. 


Special  Items ; 

I.  The  Chief,  Naval  Staff  is  at  the  Fuehrer  Headquarters  for 
a  report. 

For  his  report  and  the  Fuehrer's  decisions  see  l/Skl  I  b  663/14-2 
Gkdos.  Chefs,  in  War  Diary,  Part  C,  Vol.  VII. 

Of  particular  interest;   The  Fuehrer  refused  to  grant  the  requested 
permission  for  operations  by  cruiser  SCHEER  in  the  Atlantic  during 
the  winter. 

II.  Due  to  past  experience  in  naval  reporting,  particularly  that 

of  19  Aug.  during  the  Dieppe  raid,  the  Naval  Staff  makes  the  follow- 
ing request  of  Naval  Groups  West,  North  and  South,  the  German 
Naval  Command,  Italy,  and  the  Fleet:   Until  the  revised  regulations 
concerning  the  Navy's  reporting  system  are  issued,  the  above  com- 
manders are  requested  to  take  whatever  steps  are  necessary  to  speed 
up  transmission  of  observations  and  reports. 

For  copy  of  this  directive  see  l/Skl  I  a  20616A2  Gkdos  •  in  War 
Diary,  Part  B,  Vol.  V. 

III.  After  investigating  the  possibility  of  using  planes 
systematically  in  order  to  make  cruiser  warfare  against  merchant 
shipping  safer  and  more  effective,  the  Naval  Staff  Operations 
Division  reached  the  conclusion  that  future  developments  must 


-313- 


CONFIDENTIAL 


26   Aug.    19i;2 


aim,   not    at   a  cruiser   equipped  with  ship-borne  planes,  but  at 
an  aircraft   carrier  with  adequate   armament.     During   subsequent 
discussions    of   the  relative  merits    of  battleships   and  air   craft 
carriers,    the  Naval   Staff   Operations  Division  states   that    it    is 
too  early   to  say  that  possible   future   developments   in   planes 
jeopardize  the  usefulness    of   the  heaviest   and  costliest  battle- 
ships.     The   tasks   of   the  two  types    of  ships   must  be   clearly   differ- 
entiated,   and  further  developments    in  ship  construction  must  be 
undertaken  with  this    in  mind.      The  battleship  Is   for   combat 
with  guns,    the   ai-rcraft   carrier  for   operations   involving   planes. 

A  detailed  analysis  by  the  Planning  Branch,  Naval  Staff  Operations 
Division  which  will  serve  as  a  basis  for  future  discussion  of  this 
problem  is   contained  in  War  Diary,    Part  B,   Vol.   V. 


Situation  26  Aug.    iql+2 

I.        War   in  Foreign  Waters 

1.  Enemy  Situation: 
Nothing   to   report. 

2.  Own   Situation; 

No  reports  were   received  from  our    ships    in  foreign 
waters. 

Enemy   situation   report  by  Radiograms   02ll|  and  l829» 


II.      Situation  West  Area 

1.  Enemy  Situation! 

An  Intelligence  report  from  Portugal  reveals  that  3 
British  steamers  escorted  by  a  corvette  left  the  Tejo  River  mouth 
during  the  night  of  25  Aug.  in  a  southerly  direction.   On  25  Aug. 
a  steamer  under  Panamian  flag  left  Lisbon  for  Durban. 

Air  reconnaissance  sighted  30  steamers  on  a  northeasterly  course 
proceeding  in  the  forenoon  in  the  waters  southwest  of  Ireland. 

2.  Own   situation; 

Atlantic   Coast: 

Nothing  to  report. 

Channel  Coast; 

A  group  of  the  38th  Mine  Sweeper  Flotilla  was  bombed 
and  strafed  by  enemy  planes  off  Gris  Nez  shortly  after  midnight. 

Otherwise  nothing  to  report. 

Special  Items : 

a.   The  Commander,  PT  Boats  reports  that  2  additional  PT  boat 

-31I+- 


CONFIDENTIAL 
26  Aug.  191+2 

crews  can  only  be  assigned  to  the  1st  PT  Boat  Flotilla,  in  order 
to  permit  the  commissioning  of  2  more  vessels  which  he  himself 
considers  -necessary,  at  the  expense  of  the  flotillas  operating  in 
the  west  area.   5  vessels  of  the  6th  PT  Boat  Flotilla  will 
probably  have  been  overhauled  by  the  middle  of  September  and 
another  3  vessels  by  25  Sep.  The  Commander,  PT  Boats  reports  fur- 
ther that  the  defensive  tasks  in  the  west  area  require  that  the 
5th  PT  Boat  Flotilla  remain  in  the  Channel  area  proper  (Cherbourg), 
and  that  consequently  again  only  9  to  12.  boats  of  the  2nd  and 
14th  PT  Boat  Flotillas  will  be  available  in  the  principal  zone 
of  operations,  the  Hoof den  area.   The  Commander,  PT  Boats  there- 
fore requests,  that  he  be  permitted  to  use  the  vessels  of  the 
6th  PT  Boat  Flotilla  from  Ijmuiden  in  the  Hoofden  area  as  they 
become  ready.   Preparations  for  transfer  of  this  flotilla  in  case 
of  unforeseen  developments  in  the  Gulf  of  Finland  continue.  '(See 
Telegrams  1135  and  1205* ) 

b.  Group  West  welcomes  the  plan  of  the  Commander,  Destroyers 
to  assign  torpedo  boats  T  "17",  T  "18",  and  T  "19"  to  the  5th 
Torpedo  Boat  Flotilla  in  the  west  area.   (See  Telegram  2330.) 

c.  Maps  of  the  British  General  Staff  captured  during  the  Dieppe  > 
raid  reveal  that  the  enemy  was  so  well  acquainted  with  the  location 
of  our  flanking  anti-invasion  barrages  in  the  Channel  that  his 
landing  barges  were  routed  directly  through  the  gaps.   The  British 
operations  plans  were  worked  out  on  16  Jul.   The  minefields 
traversed,  by  the  enemy  were  not  laid  until  20  to  22  Jul.   at  a 
alight  distance  from  the  planned  location.   Announcements  of-  the 
closed  areas  by  the  Admiral,  French  Coast  were  made  on  13,  20  and 
21  Jul.,  generally  speaking  after  the  enemy  plans  had  been  worked 
out.   It  must  thus  be  strongly  suspected  that  the  enemy  learned 

on  16  Jul.  at  the  latest  of  the  plans  which  Group  West  made  known 
to  the  Naval  Staff  only  on  17  Juil  This  assumption  necessitates 
a  renewed  check  and  intensification  of  all  security  measures  and 
requires,  in  addition,  that  the  minefield  gaps  be  closed.  This, 
by  the  way,  has  already  been  suggested  by  the  Commander,  PT  Boats, 
too,  for  different  reasons. 

Group  West  receives  a  corresponding  directive  -by  the  Naval  Staff, 
with  copies  to  Group  North  and  the  Counter  Intelligence  Section 
of  the  Intelligence  Division,  Armed  Forces  High  Command.  For 
copy  of  order  see  I  E  I653/I+2  Gkdos.  Chefs,  in  War  Diary,  Part 
C,  Vol.  VI. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 
Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation: 

An  enemy  air  attack  on  one  of  our  convoys  north  of 
Ameland  was  repulsed  at  23IO  of  25  Aug. 

On  26  Aug.  mine -exploding  vessels  and  harbor  defense  boats 

,   -515- 


CONFIDENTIAL 
26  Aug.  19  42 

swept  9  ground  miner,  in  the  3orkum  area,  and  a  nine  sweeper  and  a 
nine-sweeping  plane  each  swept  one  more  off  Zeebruegge.   Enemy 
reconnaissance  in  the  afternoon  over  the  coastal  area  of  the 

German  Bight . 

British  radio  broadcasts  on  22  Aug.  reported  that  14  Danish  trawlers 
were  captured,  probably  at  the  Doggerbank,  and  the  Danish  llavy 
Ministry  had  word  that  a  Danish  cutter  was  sunk  on  18  Au"3»  in 
quadrant  AN  3757  supposedly  by  a  British  destroyer;  in  view  of  these 
reports  Group  North  requests  that  the  Operations  Staff,  Air  Force 
be  asked  to  have  the  3rd  and  5th  Air  Forces  reconnoiter  the  Dogger- 
bank  area  more  frequently  and  to  direct  them  to  destroy  oil  fish- 
ing vessels  encountered  beyond  the  areas  assigned  to  German  and 
neutral  fishing  vessels.   The  Group  expects  that  these  measures 
will  restrain  the  activities  of  enemy  warships  and  protect  the 
German  fishing  industry. 

The  Naval  Staff  is  following  this  matter  up. 

2.    Norway: 

Enemy  Situation: 

The  Armed  Forces  Intelligence  Service  transmits  a 
communication  of  the  Reich  Central  Security  Office  of  26  Aug. 
concerning  a  report  from  a  reliable  agent  and  member  of  the 
Polish  resistance -movement  according  to  which  a  British-American 
landing  attempt  is  to  be  made  in  Norway  between  28  Aug.  and 
3  Sep. 

Own  Situation: 

On  22  Aug.  and  15  Aug.  a  Russian  battery  on  Rybachi 
Peninsula  fired  unsuccessfully  at  German  westbound  convoys 
and  also  at  the  Army  Coastal  Battery  "454"  where  it  scored  a 
hit  on  the  barracks.  • 

The  Commanding  Admiral,  Fleet  sailed  on  board  the  HELA  from 
Trondheim  in  a  southerly  direction  with  escort  vessel  F  "1" 
and  motor  mine  sweepers  R  "64"  and  R  "58". 

A  submarine  chase  in  quadrant  AN  3161  was  unsuccessful.   Convoy 
service  proceeded  according  to  plan. 

The  Commanding  Admiral,  Norway  reports  that  because  of  the 
depth  of  the'  water  it  is  impossible  to  lay  the  minefields  south 
of  minefield  1  and  off  Lister,  as  proposed  by  Group  North  (see 
War  Diary  24  Aug.).   Submarines  will  have  to  be  combatted  in 
these  areas  by  permanent  subchaser  patrols.   The  Commanding 
Admiral,  Norway  suggests  2  additional  minefields  in  the  Feie- 
stein  area,  namely  a  minefield  3a  between  minefields  3  and  4 
and  a  minefield  6  north  of  minefield  5.   The  Commanding  Admiral, 
Norway  cannot  agree  with  the  objections  of  the  Commanding  Admiral, 
Fleet  (see  War  Diary  24  Aug.)  with  regard  to  the  location  of  the 
minefields  and  the  latter ' s  suggestion   for  a  new  anti-submarine 
barrage  off  Stavanger  and  refers   in  this  connection  to  the  war 
experiences  of  the  Naval  Staff  Operations  Division  outlined  in 
its  pamphlet  "Mine-laying*  Tactics  No.  10".   For  details  see 
Telegram  1810. 

Because  of  the  transfer  of  the  6th  PT  Boat  Flotilla  from  the 

-316- 


CONFIDENTIAL 
26  Aug.  I9I4.2 

Norwegian  area  to  Germany,  the  Naval  Staff  Operations  Division 
demanded  on  28  Jul.  that  tender  LUEDERITZ  serving  as  radio  relay 
station  be  replaced  at  once  by  a  land  relay  station  or  by  another 
vessel.  Following  study  of  this  request  by  the  Chief,  Naval 
Communications  Division,  on  26  Aug. ,>  the  Fleet  Branch  of  the  Naval 
"Staff  Quartermaster  Division  assigned  the  METEOR  to  take  the 
place  of  the  LUEDERITZ.   The  latter  can  be  withdrawn  only  after 
the  METEOR  is  ready  to  sail.  It  is  still  being  investigated 
whether  the  task  could  be  taken  over  later  on  by  the  Vardoe 
radio  station. 

•  The  Naval  Staff  Operations  Division  regrets  to 
state  that  the  LUEDERITZ  has  not  been  released, 
as  was  urgently  demanded^ even  though  a  month  has 
elapsed. 

3.   Arctic' Ocean; 

Enemy  Situation: 

Radio  monitoring  intercepted  a  report  from  a  British 
ship  sailing  approximately  105  miles  south  of  the  South  Cape 
at  18  knots,  course  2J4.50,  that  she  was  being  followed  by  a 
shadower. 

At  O9I4.5  air  reconnaissance  sighted  3  British  destroyers  in  quadrant 
AB  3855  proceeding  at  15  knots  on  a  270°  course.   Submarine  U  "88" 
reported  the  same  destroyers  in  quadrant  AB  39^5  on  an  easterly 
course  disappearing  from  sight.   An  inquiry  resulted  in  the  state- 
ment that  the  enemy's  last  reliably  established  course  was  south- 
westerly and  that  the  reported  easterly  course  was  based  on 
assumption.   At  1025  air  reconnaissance  reported  1  cruiser  and 
2  destroyers  on  a  westerly  course  in  quadrant  AB  373&.  It;  *s 
not  clear  whether  these  reports  refer  to  a  single  or  to  2  different 
forces. 

At  IOI4.5  air  reconnaissance  sighted  5  steamers  and  3  escort  vessels 
on  a  northerly  course  at  the  White  Sea  entrance. 

The  radio  intercept  service  of  the  Air  Force  intercepted  an  order 
of  the  Air  Force  Commander  of  the  Arctic  Fleet  to  the  95th  Air 
Force  Regiment  calling  for  air  protection  of  a  convoy  and  for 
escort  forces  consisting  of  2  destroyers  and  1  escort  vessel; 
this  convoy  which  sailed  at  1800  on  25  Aug.  is  expected,  to  be  at 
700  58'  N,f|80  13'  E  on  27  Aug.  It  is  to  be  picked  up  by  the  air 
escort  at  dawn  on  26  Aug.;  the  destroyers  are  to  be  escorted  on 
their  return  voyage.  Bduvaya  Guba  was  mentioned  as  the  point  of 
departure  or  destination  of  the  convoy. 

Own  Situation: 

The  Naval  Staff  Operations  Division  assumes  for  the 
time  being  that  a  convoy  sailed  at  1800  on  25  Aug.  from  Bdushya 
Bay,  and  it  will  be  at  700  58'  N^0  03 '  B  (sic,  Tr.N.)  on  27  Aug., 
and  relays  this  assumption  to  Group  North  and  the  Admiral,  Arctic 
Ocean,  adding  that  no  further  information  is  available.  (See 
Telegram  2338.) 

The  Commanding  Admiral,  Norway  points  to  the  possibility  that  the 

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CONFIDENTIAL 
26  Aug.  19i+2 

announced  convoy  is  Identical-. with  the  one  sighted  at  the  White 
Sea  entrance  at  IOI4.5 •  Further  investigation  is  required. 

Submarine  U  M209"  reported  that  ice  damaged  her  periscope  -when 
she  surfaced.   Submarine  U  "255"  reported  that  the  Sheranyia 
radio  station  was  destroyed  on  25  Aug.  at  OJ4.3O.  No  radio  communic- 
ation was  observed. 

At  23U9  the  Admiral,  Arctic  Ocean  directed  the  ULK  to  lay  the 
minefields  north  of  75°  N  and  east  of  63°  E  only  upon  special 
order  so  as  not  to  endanger  the  SCHEER  and  submarines  which  are 
on  their  way  back;  the  ULM  is  to  report  the  receipt  of  this  order 
by  short  signal  indicating  her  position  as  of  2200  on  26  Aug. 

No  reports  were  received  from  operations  "'Sunderland"  and  "Zar". 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Baltic  Sea  Entrances  and  Western  Baltic  Sea: 

The  German  steamer  DRAN  ran  aground  off  Hesseloe  in 
the  evening  of  25  Aug.  but  was  refloated  during  the  forenoon 
of  26  Aug.  A  ground  mine  was  swept  at  the  northern  entrance 
of  the  Great  Belt  by  a  mine-exploding  vessel.   On  25  Aug.  a  balloon 
which  carried  approximately  1/2   cu.  m.  of  explosive  was  salvaged 
in  the  Kattegat. 

A  convoy  of  5  steamers  proceeded  from  Oslo  via  Vasa  to  Jacobstadt 
according  to  plan. 

The  fact  that  steamer  HEINRICH  VON  PLAUEN  struck  a  mine  south 
of  Pillau  led  to  the  discovery  of  ground  mines  there.  The  threat 
from  ground  mines  In  Danzig  Bay  caused  Group  North  to  order  a  check- 
sweep  of  the  submarine  training  areas.  For  the  corresponding 
directive  to  Baltic  Naval  Command  see  Telegram  1713*  While  it  is 
not  possible  at  this  time  to  increase  the  number  of  minesweepers 
in  the  area  of  the  Baltic  Naval  Command,  the  latter  is  advised 
to  withdraw  a  few  vessels  from  the  western  Baltic  Sea  even  though 
channel-sweeping  operations  in  that  area  will  be  delayed  thereby. 

2.  Eastern  Baltic  Sea: 

Enemy  Situation: 

A  total  of  6  submarines  were  sighted  or  located  by  the 
radio  Intercept  service  in  the  eastern  part  of  the  Gulf  of  Finland, 
Lively  activity  of  PT  boats,  motor  minesweepers  and  patrol  vessels 
in  the  "Seei~eln  area  as  well  as  the  appearance  of  the  KRASNOYE 
SNAKYA  indicate  in  Group  North's  opinion  that  the  submarines  are 
getting  ready  for  a  breakthrough. 

According  to  testimony  of  war  prisoners,  torpedo  boat  T  "20I4."  and 
a  minesweeper  or  patrol  vessel  were  destroyed  during  the  night 
of  23  Aug.  in  the  "Seei.pel"  area  between  Vigrund  and  Tyttersaari. 
Finnish  air  reconnaissance  sighted  a  10  mile  oil  slick  in  mine- 
field "Seehund  10";  wreckage  and  equipment  in  minefield  Ontajaervi, 
including  a  case  of  Russian  explosive  cutter  charges,  were  salvaged. 
This  indicates  at  least  2  more  successes  due  to  mines. 


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CONFIDENTIAL 
26  Aug.  I9I4.2 

Own  Situation: 


Minefield  "Seehund  VI"  has  been  laid.  Subchaser  "1216" 
was  torpedoed  by  an  enemy  PT  boat  and  sank  off  Vikallagrund.   1 
officer  and  17  men  were  rescued. 

Convoy  and  mine-sweeping  operations  proceeded  according  to  plan. 

The  Commander,  Mine  Sweepers  reports  that  the  1st  Air  Force 
has  only  9  fighter  planes  available  in  the  area  between  Orel 
and  the  Gulf  of  Finland;  they  are  based  on  an  airfield  220  km 
from  the  Gulf  of  Finland.  Group  North  requests  that  at  least  a 
few  fighter  planes  be  assigned  to  the  Gulf  of  Finland  if  the 
land  situation  permits  their  transfer. 

The  Naval  Staff  is  taking  up  the  matter  with  the  Air  Force 
Operations  Staff.  Russian  planes  dropped  German  language  leaf- 
lets in  the  Helsinki  area,  inciting  German  sailors  to  mutiny. 


V.   Submarine  Warfare    > 

1  •   Enemy  Situation : 

The  British  steamer  PORT  JACKSON  reports  that  she  was 
fired  on  by  a  submarine  330  miles  southwest  of  Porcupine  Bank. 

Otherwise  numerous  submarine  warning  signals  from  the  U.S.  east 
coast  and  the  West  Indian  waters. 

2.    Own  Situation; 

The  operations  of  Group  "Loss"  against  the  convoy  in 
the  central  North  Atlantic  were  called  off.  The  submarines 
are  ordered  to  take  on  supplies. 

No  successes  were  reported  from  off  the  American  coast. 

In  the  Caribbean  Sea,  a  3*500  GRT  steamer  was  sunk  in  quadrant 
EC  II96  by  submarine  U  "558". 

Groups  "Bluecher"  and  "Eisbaer"  are  operating  against  a  convoy  in 
quadrant  DH  proceeding  on  a  northeasterly  course,  out  of  which 
steamer  CLAN  MACWHIRTER  (5,9)4.1  GRT)  was  sunk  by  submarine  U  "I56". 

Submarine  U  "I30"  of  the  Freetown  group  sank  steamer  BEECHV-00D  (i+,897 
GRT)  in  quadrant  ET  6715*  Secret  instructions  taken  from  her 
captain  concerning  the  shipping  route  from  Capetown  to  Freetown 
confirm  information  in  the  possession  of  the  Naval  Intelligence 
Division,  Foreign  Merchant  Marine  Branch. 

No  news  was  received  from  the  Mediterranean. 

For  additional  reports  see  supplement  to  submarine  situation  in 
War  Diary,  Part  B,  Vol.  IV. 


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CONFIDENTIAL 
26  Aug.  19U2 

VI.   Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

During  the  day  fighter  bombers  raided  Eastbourne. 
During  the  nigh,t  pf  26  Aug.  17  planes  attacked  Colchester,  2 
other  places  near^Dover,  and  a  convoy  east  of  Harwich  with  un- 
determined results. 

50  enemy  planes  penetrated  into  Germany  from  the  east  and  reached 
the  Memel,  Berlin,  Torgau  Gruenberg.  Gnesen,  Ortelsburg  line. 
Bombs  were  dropped  on  Berlin  (Dahlem),  Stettin,  Koenigsberg,  and 
Danzig.   See  daily  situation  for  a  report  of  the  damage. 

2.  Mediterranean  Theater: 

Reconnaissance    and  escort   activity.     Fighter  bombers 
attacked  gun  emplacements    and  motor  vehicle   concentrations   at 
El  Alamein  and   Uweisat. 

3.  Eastern  Front : 

54.  enemy  planes  were  shot  down  at  the  various  Army 
sectors. 

Reconnaissance  activity  in  the  Black  Sea  and  the  Caspian  Sea, 
also  in  the  Arctic  Ocean.  For  results  aee  enemy  situation 
reports  under  the  respective  headings. 

Special  Item:  : 

The  Air  Force  Operations  Staff  submits  a  directive  to  the  Air 
Force  Group  Command,  Central  Area  and  the  4th  Air  Force;  it 
concerns  the  transfer  on  27  Aug.  of  a  mine-3weeping  plane  for 
temporary  use  by  the  4th  Air  Force.   All  necessary  arrangements 
to  be  agreed  upon  directly  between  the  4th  Air  Force  and  Naval 
Group  South. 


I 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

The  cruiser  CHARYBDIS  sailed  from  Gibraltar.  2  troop 
transports,  one  of  11,000  GRT,  the  other  of  12,000  GRT,  arrived 
from  a  westerly  direction  with  troops   under  escort   of  2  destroyers. 

According   to   latest    aerial   photos,   the  ILLUSTRIOUS-class   aircraft 
carrier   seems  to  be  equipped  with  anti-torpedo  nets  when  at    sea. 
The  German  Naval   Command,   Italy  will  have   the   photos   reexamined. 

Traffic    in   the  eastern  Mediterranean  was    light   on  26   and  27  Aug. 
according   to  air  reconnaissance. 

2.  Own   Situation,    Mediterranean: 

Tobruk  was    attacked  by  enemy  planes   during  the   night    of 
25   Aug.   A  gasoline   supply  dump  was  burned.      Light   enemy  naval 
forces    shelled  the   coastal  road  near  El  Daba   during   the   same 
night. 

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CONFIDENTIAL 


26   Aug.    19 1+2 


3.        Transport   of   Supplies   to  North  Africa; 

It  Is  "belatedly   reported  that    the    convoyed  steamers 
OSTIA  and  OLYMPOS  were   attacked  by  an   enemy   submarine   10  miles 
north-northeast   of  Derna    on  23   Aug.     A  subsequent   submarine 
chase  was   unsuccessful. 

Transports  to  North  Africa  from  Italy  and  Greece   as  well  as 
coastal   supply   traffic   proceeded  according  to  plan.     Italian 
submarines   are  again  engaged  In   coastal  supply  transports. 

1+.        Area  Naval  Group  South; 

Aegean  Sea ; 

Enemy  planes  attacked  the  Corinth  area.  The  Canal  was 
slightly  damaged  but  remained  navigable.  Aegean  convoys  proceeded 
without  interference.  The  Admiral,  Aegean  Sea  calls  the  attention 
of  the  Naval  Construction  Division  to  the  confusion  caused  by 
contradictory  orders  regarding  the  300  shipyard  workers  for  Greece 
which  were  allocated  on  8  Apr.  I9I4.2,  and  announces  that  the 
Director  of  Ship  Construction  will  personally  intervene  in  this 
matter  In  Berlin. on  3  Sep. 

The  Naval  Staff  fails  to  see  why  the  execution 
of  such  a  small  matter,  which  Is,  however,  of 
greatest  importance  to  the  Navy,  should  take  more 
than  a  year. 

Black  Sea; 

Enemy  Situation; 

Air  reconnaissance  spotted  3  southbound  and  a  northbound 
convoy  off  the  southeast  coast.  In  addition,  a  heavy  cruiser  and 
2  destroyers  were  sighted  at  sea  off  Poti.  No  ships  were  at  the 
ports  of  Novorossisk,  Gelendzhik,  Gagry  and  Adler,  while  1  heavy 
cruiser,  1  light  cruiser,  5  submarines,  2  minesweepers,  the  hull 
of  a  heavy  cruiser,  I4.  tankers,  and  I4.  steamers  were  at  Batum. 

Radio  monitoring  revealed  7  submarines  at  sea,  5  °f  them  in  the 
southwestern  Black  Sea. 

Own  Si  tua  tl  on ; 

On  2I4.  Aug.    a  mine  was   swept   in   the   outer  harbor   of  Yeisk 
by  a  mine-sweeping  plane.      The  Azov  minesweeper  group  swept   a 
moored  mine    outside  the  shipping   lane  at  the   southern  harbor   en- 
trance  of  Mariupol.     A  motor  barge   struck  a  minefield  while*  entering 
Yalta  harbor  during   the  night   of  25  Aug.;   she  rammed  and  damaged 
a  pilot  vessel.     The  barge    remained  afloat   and  is  maneuverable. 

Transport  convoys   in   the  Black  Sea  and  the  Sea   of  Azov  proceeded 
according   to  plan.     A  total   of  lj.,817  tons  was   shipped  between  2 
and  2I4.  Aug.  from  Mariupol   and  Tanganrog   to  Azov. 


VIII.   Situation  East  Asia 

The  U.S.  Navy  Department   announces   that  U.S.   naval  and  air 
forces   are  engaged  in  a  large-scale   sea  battle.        They  are 
endeavoring   to  repel  strong  Japanese  forces  which  have 

-321- 


CONFIDENTIAL 


26    Aug.    19 1+2 


approached  the  islands  southeast  of  the  Solomons  from  a  northerly 
direction.   A  number  of  hits  were  allegedly  scored  on  several 
Japanese  aircraft  carriers,  cruisers  and  battleships.  So  far, 
Japanese  reports  on  this  action  have  not  been  received. 


IX.   Army  Situation 

1.  Russian  Front: 

Army  Group  A; 

Army  Group  Ruoff   continued  its    advance  against   partially 
strong  enemy  resistance. 

Army  Group  Bt 

The  offensive  toward  Stalingrad  from  the  north  and  south 
is  progressing  according  to  plan.   All  enemy  attacks  were  repulsed, 
The  situation  at  the  breakthrough  at  the  Italian  division  at  the 
Don  River  was  restored  by  throwing  in  reserves.   At  Voronezh  we 
succeeded  in  dislodging  the  enemy  from  most  of  the  suburbs. 

Central  Army  Group; 

Enemy  attacks  at  the  Zhizdra  River  sector,  which  were 
carried  out  in  some  places  with  considerable  forces,  were  re- 
pulsed with  the  effective  assistance  of  our  Air  Force.  In  the 
Rzhev  area,  too,  all  more  or  less  strong  enemy  attacks  were 
repulsed.   It  appears  that  the  enemy  Is  bringing  up  reinforcements 
and  regrouping  his  forces  at  this  sector. 

Northern  Army  Group: 

Enemy  attacks  on  the  land  bridge  to  the  II  Army  Corps 
were  repulsed. 

2.  Finnish  Front: 

At    the   southern  wing    of   the   Murmansk  front  enemy  assault 
detachments   reconnoitered. 


5< 


North  Africa: 


The  enemy  is  reinforcing  his  positions  by  bringing  up 
fresh  troops.  Air  activity  is  lively. 


&XX*.t#X*-:'tw**##:*XXii*X%%'A*## 


-322- 


CONFIDENTIAL 


27  Aug.    1942 


Jtems  of  Political  Importance 

Great  Britain: 

Swedish  correspondents  report  that  all  talk  about  the  second  front, 
has  subsided  in  London,  in  spite  or  because  of  Dieppe.   It  is  hoped 
that  British  and  Amerioan  operations  in  the  Near  East  will  help  to 
-cushion  the  consequenoes  of  the  Russian  defeats,  the  extreme  gravity 
of  which  is  realized  in  London  as  well  as  in  Washington.  The  Times 
writes:   "Neither  the  dress  rehearsal  at  Dieppe  nor  the  aerial  of- 
fensive against  the  nerve  centers  of  the  German  war  industry  were 
able  to  shatter  the  oonviotion  that  Britain's  military  effort  is 
inadequate  while  Russia  faces  her  worst  crisis. 

Aooording  to  Reuter,  the  communist  paper  Daily  Worker  reappeared 
after  it  had  been  suspended  for  19  months;  also  the  paper  The  Week 
is  being  published  once  more. 

Franc  e : 

According  to  diplomatic  reports,  large  circles  are  said  to  be  badly 
disillusioned  as  a  consequence  of  the  British  failure  at  Dieppe 
and  the  conviction  is  growing  that  a  final  Anglo-American  victory 
is  impossible. 

Rumors  reaching  Stockholm  from  unoccupied  France  about  an  Allied 
landing  at  Dakar  on  25  Aug.  were  denied  by  Vichy  the  same  day.  In 
this  connection,  discussion  of  Brazil's  claims  on  French  Guiana, 
instigated  by  the  U.S.A.,  flared  up  once  more.  The  Transocean 
News  Agency  reports  that  the  U.S.  Charge  d' Affaires  at  Vichy  con- 
ferred on  this  problem  with  Laval. 

Portugal: 

The  Government  supplied  additional  explanations  to  the  German  Govern- 
ment concerning  its  note  to  Brazil.  For  details  see  Political  Review 
No.  200,  paragraph  5. 

Syria: 

The  Vichy  Telegraphic  Service  (Ofi)  reports  that  the  tension  between 
British  and  De  Gaulle  followers  has  become  more  acute. 

U.S.A. : 

A  newly  created  joint  U.S.  and  Brazilian  defense  commission  is  to 
coordinate  all  defensive  measures  and  to  take  care  of  equipment, 
supply  problems  and  fleet  operations. 

Secretary  of  State  Hull  declared  that  no  change  of  policy  toward 
Martinique  is  planned,  nor  have  new  steps  been  taken  with  regard 
to  the  removal  of  the  French  warships  from  Alexandria. 

Argent  jLna: 

It  is  learned  from  a  diplomatic  source  that  a  separate  division  for 
national  defense  has  been  created  within  the  Foreign  Ministry,  which 
is  to  cooperate  with  the  two  political  divisions  and  with  the  War 
and  Navy  Ministries.   The  Government  decree  by  which  this  new  agenoy 
is  created  points  specifically  to  the  resolutions  and  recommenda- 
tions made  with  regard  to  Pan-American  solidarity. 


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CONFIDENTIAL 
27  Aug.  1942 

Brazil; 

The  present  relations  between  Japan  and  Brazil  are  termed  by  the 
official  Japanese  press  as  a  "special  form  of  neutrality";  in  this 
connection  it  is  pointed  out  that  it  will  depend  on  Brazil  en- 
tirely in  what  direction  the  relations  will  develop.   Political 
circles  are  under  the  impression  that  Japan  intends  to  tread  cau- 
tiously, and  that  she  seems  unwilling  to  increase  the  tension  be- 
tween the  two  countries. 

Chile; 

According  to  a  diplomatic  source,  the  Axis  Powers  have  warned  Chile 
amicably  but  firmly  that  certain  recent  statements  made  by  its 
Government  cannot  be  reconciled  with  Chile's  supposedly  100$ 
neutrality.   The  Axis  Powers  have  made  every  effort  to  give  merchant 
shipping  in  the  South  Pacific  under  the  Chilean  flag  all  possible 
protection,  guarantees  and  concessions,  though  naturally  reserving 
all  the  rights  of  belligerent  nations  accorded  them  by  international 
law.   In  replying  to -this  protest,  the  Chilean  Foreign  Minister 
reiterated  the  extremely  difficult  position  of  his  country  and  re- 
asserted that  an  attack  on  the  Panama  Canal  or  interference  with 
shipping  in  the  Paoifio  would  render  it  very  difficult  for  Chile 
to  maintain  her  neutrality.  However,  he  hopes  that  the  President's 
trip  to  Washington  will  be  followed  by  a  certain  letup  in  foreign 
relations;  in  this  connection  he  expressed  the  expectation  that 
reaction  might  set  in  against  U.S.  domination  of  Chile.   Well-in- 
formed German  circles  have  little  hope  that  domestic  and  foreign 
pressure  on  the  government  will  ease. 

Uruguay; 

The  Foreign  Ministry  published  the  following  decree: 

1.   Due  to  prevailing  conditions,  the  Government  of  Uruguay 
declares  its  complete  solidarity  with  Brazil.   It  will  consider 
Brazil  a  non-belligerent  since  she  was  driven  into  the  oonflict 
by  Germany  and  Italy. 

-2.   In  view  of  the  geographic  proximity  of  the  two  countries, 
Uruguay's  national  defense  authority  is  authorized  to  seek  an  agree- 
ment with  the  Brazilian  military  authorities  on  all  matters  pro- 
moting effective  joint  protection  against  potential  attacks. 

According  to  a  British  radio  broadcast,  the  Government  of  Uruguay 
informed  the  Brazilian  Government  that  its  air  and  naval  bases  are 
at  Brazil' 8  disposal. 


Special  Items 

I.   The  Wilhelmshaven  Armed  Forces  Intelligence  Center  transmits 
information  from  a  British  war  prisoner  who  had  served  on  the 
RODNEY.   The  report  contains  statements  about  the  RODNEY'S  part 
in  the  action  against  the  BISMARCK  on  27  May. 

For  copy  see  l/Skl  291351/42  geh.  in  the  War  Diary. 


-321+- 


CONFIDENTIAL 
27  Aug.  1942 

II.   Evaluation  of  information  obtained  by  the  radio  decoding  and 
intercept  services  during  the  period  from  17  Aug.  to  23  Aug.  is 
contained  in  radio  intelligence  report  No.  34/42  of  the  Chief, 
Naval  Communications  Division,  Communications  Intelligence  Branch. 

With  regard  to  the  enemy  landing  at  Dieppe  on  19  Aug. ,  the  begin- 
ning of  this  operation  was  unnoticed  since  radio  silence  was  main- 
tained up  to  0628  when  the  landing  proper  began. 

Considerably  more  information  about  Russian  radio  communications 
in  the  Arctic  Ocean  has  become  available. 


Situation  27  Aug.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 
North  Atlantic: 

An  agent  reports  sighting's  convoy  of  17  large  U.S. 
troop  transports  under  escort  of  2  cruisers  and  5  destroyers  on 
19  Aug.  on  a  southerly  course  150  miles  north  of  Madeira. 

South  Atlantio: 

According  to  an  intelligence  report  from  Lisbon  dated 
25  Aug.  a  large  convoy  consisting  of  2  British  and  U.S.  divisions 
is  said  to  have  sailed  from  Freetown  on  18  Aug.  and  is  expected 
in  Egypt  about  the  middle  of  September  in  time  for  the  beginning 
of  another  offensive.  Up  to  21  Aug.  this  convoy  had  not  yet  passed 
through  the  Mozambique  Strait. 

India: 

A  Turkish  agent  reports  that  a  convoy  of  more  than  100 
6hips  now  en  route  is  expected  in  Suez  by  the  end  of  August.  An 
RRR  signal  from  a  British  steamer  was  intercepted  from  50  miles 
southeast  of  East  London,  it  was  subsequently  cancelled.  The  mes- 
sage said  that  "an  unidentified  warship  is  not  following  tne 
customary  procedure".   The  Yugoslav  steamer  SUPETAR  was  sunk  in 
the  Mozambique  Strait.  Italian  radio  intelligence  intercepted  a 
British  message,  according  to  which  the  MADRONO  (which  has  arrived 
at  Yokohama  in  the  meantime  as  a  prize  of  ship  "10")  was  either 
sunk  or  captured  on  1  or  2  Jul.  in  the  area  20°  to  30°  8,  70°  to 
87°  E. 

2.  Own  Situation: 

The  most  important  information  up  to  25  Jun.  from  the 
log  of  ship  "28",  which  was  forwarded  by  the  Naval  Attaohe  at 
Tokyo,  was  transmitted  to  all  ships  in  foreign  water6  by  Radio- 
gram 0638. 

The  sinkings  achieved  by  the  auxiliary  cruiser  were  mostly  ef- 
fected by  means  of  the  light  PT  boat. 


-325- 


CONFIDENTIAL 
27  Aug.  1942 

Enemy  situation  report  by  Radiogram  0445. 


II.  Situation  West  Area 

1.   Enemy  Situation: 

An  intelligence  report  from  Spain  relates  an  agent's  re- 
port from  London  of  18  Aug.  according  to  which  a  large-scale  land- 
ing operation  on  the  Belgian  coast  originating  from  the  Thames 
and  its  vicinity  is  planned  for  about  15  Sep.   70,000  men  will  be 
involved  to  this  operation,  40,000  of  them  British  volunteers. 

It  is  learned  from  an  Intelligence  report  of  S3  Aug.  that  convoys 
originating  in  America  are  'assembled  exclusively  in  Canada  and 
that  transports  from  the  U.S.A.  are  sent  there,  too.   At  present 
2  convoys  are  being  assembled  which  will  first  prooeed  together 
to  Iceland,  from  where  one  will  proceed  to  the  Russian  Arctic 
ports  and  the  other  to  the  British  Isles.   According  to  this 
source  at  least  2  U.S.  cruisers,  which  were  previously  at  Ports- 
mouth, took  part  in  the  attack  on  Dieppe  on  18  Aug.   Portsmouth 
is  said  to  be  the  center  for  commando  operations  and  the  main  port 
of  departure  for  the  second  front.  More  commando  undertakings  are 
said  to  be  planned  and  to  be  in  preparation  now. 

2.   Own  Situation: 

Atlantic  Coast: 

The  harbor  of  La  Pallice  was  reopened.  4  ships  of  the 
3rd  Torpedo  Boat  Flotilla  sailed  from  La  Pallice  at  1800  to  ex- 
plore the  shipping  lanes  in  the  Bay  of  Biscay. 

Channel  Coast: 

PT  boats  S  "77"  and  S  "81"  had  an  engagement  with  6 
British  motor  gunboats  from  0255  to  0308  20  miles  west  of  Le  Havre 
while  proceeding  from  Boulogne  to  Cherbourg.   For  battle  report 
see  Telegram  0725.   A  hit  on  an  enemy  boat  was  observed.   At  2310 
of  26  Aug.  the  36th  Mine  Sweeper  Flotilla  shot  down  one  of  our  own 
Ju  88 's  between  Ostend  and  Nieuport. 

At  0910  30  enemy  single  and  twin  engine  fighters  bombed  and  strafed 
the  roadstead  of  Dieppe.   Patrol  boat  VP  "1509"  was  hit  by  2 
bombs  and  towed  sinking  to  Dieppe.   A  subchaser  and  another  patrol 
vessel  suffered  damage  and  casualties.   2  of  the  attackers  were 
definitely  shot  down,  a  third  one  probably. 


III.  North  Sea,  Norway.  Arctic  Ocean 
1.   North  8ea: 

Enemy  Situation: 
Nothing  to  report. 

-?26- 


CONFIDENTIAL 
27  Aug.  1943 

Own  Situation; 

Escort  and  patrol  services  in  the  area  of  the  Commanding 
Admiral,  Defenses,  North  according  to  plan,  without  special  in- 
cidents. 7  ground  mines  were  swept. 

During  an  enemy  air  raid  on  Rotterdam  the  mine-laying  ship  COBRA 
at  the  Wilton  shipyard  was  hit  by  a  bomb  at  the  forward  end  of  the 
bridge  and  oapsized. 

2.  Norway: 

Enemy  Situation: 

According  to  an  intelligence  report  based  on  information 
from  .British  diplbraatic  circles  at  Lisbon,  a  British-American  land- 
ing on  the  Norwegian  coast  between  Narvik  and  Murmansk  is  expected. 
It  is  anticipated  that  5,000  British  and  American  planes  will  at- 
tack Germany  by  October. 

Own  Situation: 

Nothing  to  report. 

3.  Arctic  Ocean: 

Enemy  Situation: 

The  order  issued  to  the  95th  Naval  Air  Force  Regiment 
which  was  intercepted  by  the  Air  Force  intercept  service  (see  War 
Diary  26  Aug.)  was  studied  once  more  by  the  Chief,  Naval  Communica- 
tions Division,  Radio  Intelligence  Branch  and  is  now  interpreted 
as  follows: 

The  95th  Naval  Air  Force  Regiment  of  the  Russian  Arctic  Fleet,  as- 
signed to  convoy  escort  duty  in  Gorlo  Strait  at  the  end  of  July,  was 
notified  at  2300  on  25  Aug.  that  1  patrol  vessel  and  3  ships 
thought  to  be  freighters  left  an  unidentified  port  at  1800  on  25 
Aug.,  and  that  2  destroyers  sailed  from  another  unidentified  port, 
bound  for  Beluyava  Guba  (Novaya  Zemlya) .   The  route  of  the  convoy 
would  be  from  the  Kanin  Nos  lighthouse  to  Beluyava  Guba.  speed 
18  knots.   2  destroyers  would  accompany  the  convoy  to  70°  58'  N„ 
48°  03' E  (sic.,  Tr.  N.)  where  they  would  arrive  at  1100  of  27  Aug. 
and  then  return  with  25  knots  speed.   The  planes  are  to  escort  the 
convoy  from  dawn  of  26  Aug.  up  to  this  point  and  thereupon  escort 
the  returning  destroyers  due  to  arrive  at  the  lighthouse,  probably 
the  one  on  the  east  coast  of  Kola  Peninsula,  at  0100  on  28  Aug. 

The  plausible  version  of  the  report  is  transmitted  to  Group  North 
and  the  Commanding  Admiral,  Norway. 

At  0730  air  reconnaissance  sighted  1  steamer,  1  patrol  vessel  and 
3  lighters  in  Khabarova  Bay  (south  of  Novaya  Zemlya).   On  26  Aug. 
radio  monitoring  intercepted  a  message  of  a  Russian  radio  station, 
probably  that  of  Kanin  Nos,  according  to  which  5  freighters  and 
3  minesweepers  passed  the  station  at  1650  on  a  northeasterly  course 
and  v/ere  lost  from  sight  at  2025  proceeding  on  the  same  course. 

According  to  radio  intelligence,  6  to  8  British  ships  were  located 
during  the  day  and  the  night  in  the  southern  part  of  Gorlo  Strait 
and  in  the  Archangel  area. 


-527- 


CONFIDENTIAL 
37  Aug.  1942 

Reconnaissance  by  planes  south  of  Novaya  Zeralya  did  not  sight  enemy 
forces. 

Own  Situation: 

The  situation  analysis  by  Group  North  at  noon  of  27  Aug. 
considers  among  others  also  the  possibility  that  the  outbound  convoy 
reported  by  the  Air  Force  radio  intercept  service  might  be  a  de- 
parting PQ  convoy.   In  this  connection  Group  North  refers  to  the 
British  shiDS  located  in  Gorlo  Strait  by  radio  monitoring.   Tha 
Naval  Staff  believes  that  convoy  PQ  18  is  not  en  route.   In  the 
meantime  several  single  ships  on  an  easterly  course  were  located 
in  the  area  east  of  Bear  Island;  in  view  of  their  positions  and 
course  it  may  be  assumed  that  they  are  heading-  for  Archangel  from 
the  west.   There  is  no  indication  where  the  5  steamers  reported 
off  Archangel  came  from.  It  is  possible,  though,  that  these  ships 
come  from  northern  Siberian  ports,  but  there  is  also  the  possibility 
that  they  are  transferring  from  Murmansk  to  Archangel.   It  is  un- 
likely, however,  that  the  ships  are  a  convoy  bound  for  Archangel 
from  the  west. 

For  Group  North's  situation  analysis  see  Telegram  l/Skl  21119/42 
Gkdos.  in  file  "Wunderland". 

The  Commanding  Admiral,  Group  North  gave  permission  to  the  Admiral, 
Arctic  Ocean  to  start  operation  "Wunderland"  the  evening  of  27  Aug., 
provided  there  are  no  important  reasons  against  it.   At  the  same 
time  the  task  force  of  the  Commanding  Admiral,  Cruisers  was  placed 
on  3-hour  readiness. 

No  reports  were  received  about  operation  "Zar".  The  order  issued 
to  the  ULM  to  report  her  position  is  inadvisable,  in  view  of  the 
SCHEER  operation. 

Special  Items: 

a.  In  the  Naval  Staff's  opinion,  weather  stations  should  be 
maintained  in  areas  not  regularly  surveyed  by  air  or  naval  forces 
only  if  other  circumstances  afford  them  a  certain  degree  of  pro- 
tection, for  instance  if  they  are  ice-bound  as  was  the  oase  in 
earlier  similar  undertakings.   This  possibility  does  not  exist, 
however,  in  the  case  of  Bear  Island,  which  is  ice-bound  for  only 

a  short  period  every  year.   The  Naval  Staff  Operations  Division 
is  therefore  opposed  to  establishing  a  weather  station  on  Bear 
Island  as  planned  by  the  Intelligence  Division  of  the  Armed  Foroee 
High  Command  and  recommends  trying  to  obtain  the  required  informa- 
tion from  this  area  by  means  of  automatic  weather  reporting  equip- 
ment. 

For  copy  of  corresponding  memorandum  see  l/Skl.  I  Nord  20975/42 
Gkdos.  in  War  Diary,  Part  C,  Vol.  I la. 

b.  Group  North  reports  with  reference  to  the  Naval  Construc- 
tion Division' 8  opinion  of  the  seaworthiness  of  cruiser  KOELN 

that  cruisers  on  operations  cannot  necessarily  seek  shore  protection 
in  case  of  rough  seas,  and  either  this  risk  must  be  borne  or  else 
cruisers  must  not  be  operated  outside  the  Baltic  Sea  and  the 
Skagerrak. 


-528- 


CONFIDENTIAL 
27  Aug.    1943 

V 

If  the  latter  alternative  should  be  decided  on,  Group  North  re- 
quests that  no  more  cruisers  be  assigned  to  the  Arctic  area  or 
that  they  be  used  there  for  the  sole  purpose  of  repulsing  enemy 
landing  attempts. 


IV.   Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea 

No  speoial  incidents  from  the  area  of  the  Commanding  Admiral, 
Defenses,  Baltic  Sea. 

Group  North  gave  orders  to  remove  the  Swinemuende  dummy  barrage  < 
which  interferes  with  sweeping  ground  mines. 

Acoording  to  the  Operations  Staff  of  the  Armed  Forces  High  Command, 
the  Fuehrer  has  ordered  the  reinforcement  of  the  Danish  coastal 
defenses  along  the  lines  of  the  Westwall.   The  work  is  to  be  done 
with  the  forces  available  there.   No  additional  foroes  are  re- 
quired.  The  Commanding  General  of  the  German  Armed  Foroes  in 
Denmark  submitted  a  priority  list.  He  proposes  tnat  the  harbors 
of  Esbjerg,  Kyboroen  and,Hirthals  be  reinforced  first  by  con- 
struction of  hedgehog  defenses.   The  Naval  Staff  is  requested  to 
comment  on  this.  plan.   (See  Telegram  1715.) 

4 

The  Swedish  Navy  reported  that  a  Finnish  convoy  was  attacked  on 

25  Aug.  in  the  Aaland  area  by  a  submarine  with  2  torpedoes  which 
missed.   The  Naval  Attache  at  Stockholm  believes,  that  transports 
are  supposed  to  proceed  through  Oeregrund  and  to  be  dismissed 
from  their  Swedish  escort  at  Oresundsgrepen,  the  boundary  of 
Swedish  territorial  waters.   The  Attache  requests  the  Naval  Staff 
to  confirm  his  assumption  and  if  necessary  to  repeat  its  directive 
that  transports  are  to  be  handed  over  to  the  Finns  at  Simpnaes. 
(See  Telegram  2115.)   In  view  of  the  submarine  menace  in  the 
Aaland  Sea,  Group  North  ordered  that  the  escorts  of  troop  trans- 
ports be  reinforced  by  3  ships  of  the  1st  Mine  Sweeper  Flotilla. 

Ship  "47 "  proceeding  from  Memel  to  Windau  was  attacked  In  the 
eastern  Baltic  Sea  north  of  Libau  by  a  Russian  submarine  with  2 
torpedoes,  both  of  which  missed.  The  submarine  submerged  after 
being  hit  by  gunfire.  Depth  charges  were  dropped,  too,  but 
results  could  not  be  ascertained.   4  fighter  planes  and  2  low- 
flying  planes  attacked  the  3rd  Mine  Sweeper  Flotilla,  the  latter 
dropping  2  aerial  torpedoes  which  missed.  Mine-sweeping  and 
escort  operations  in  the  area  of  the  Commander,  Mine  Sweepers, 
Baltic  Sea  proceeded  uneventfully. 


V.   Merchant  Shipping 

1.   Enemy  shipping  situation  as  of  1  Aug.  1942 

Fluctuations  of  the  available  tonnage  were  due  ex- 
clusively to  new  constructions  and  losses,  since  additions  by 
transfers  and  purchases  ceased  after  the  U.S.A.  entered  the  war. 


-329- 


CONFIDENTIAL 
27  Aug.  1942 

In  spite  of  rising  ship  building  output,  almost  675,000  GRT 
during  July  as  against  230,000  GRT  in  January,  the  available  enemy 
tonnage  of  33,600,000  GRT  on  1  Jan.  1942  deoreased  to  30,400,000 
GRT  on  1  Aug.  owing  to  constantly  rising  losses. 

Enemy  production  figures  are  rising 

The  Allied  ship-building  program  for  December  1942  calls  for  pro- 
duction of  800,000  GRT.  Sinkings  by  submarines  are  also  increasing 
since  the  beginning  of  the  year.  At  this  time  no  prediction  can 
be  made  as  to  the  future  development  of  submarine  warfare  whioh 
must  be  considered  the  yardstick  for  the  war  on  merchant  shipping. 
If  the  Axis  Powers  can  maintain  the  sinking  figures  at  the  level 
of  the  last  months  and  if  the  enemy  can  fulfill  his  production 
program,  the  sinkings  and  replacements  will  be  about  the  same  by 
the  end  of  1942>  and  the  available  enemy  shipping  space  will  have 
reached  its  lowest  level  around  the  end  of  1943  or  the  beginning 
of  1943. 

A  diagram  of  this  development  is  contained  in  the  "Foreign  Merohant 
Shipping"  report  by  the  Naval  Intelligence  Division,  Foreign  Mer- 
ohant Marine  Branch. 

2.   With  reference  to  the  control  of  merchant  shipping  in 
the  Baltic  Sea,  the  Reich  Commissioner  of  Maritime  Shipping  re- 
ported on  8  Aug.  that  the  transport  situation  in  the  Baltic  coun- 
tries no  longer  makes  it  necessary  to  take  great  risks;  he  there- 
fore proposes  that  ships  be  permitted  to  proceed  singly  (not  in 
groups)  and  close  to  shore,  provided  adequate  protection,  pos- 
sibly by  planes,  can  be  given  them.   The  Commissioner  also  re- 
quested that  the  various  shipping  authorities  be  informed  in  time 
when  escort  is  to  be  provided  in  certain  areas. 

The  Naval  Staff  examined  this  matter  together  with  Group  North  and 
the  Baltic  Naval  Station,  and  ordered  the  Baltic  Naval  Station, 
the  Commander,  Mine  Sweepers,  Baltic  Sea,  with  copy  to  Group  North, 
to  notify  the  Shipping  Representatives  at  Stettin,  Danzig, 
Koenigsberg,  Libau,  Windau,  Riga,  and  Reval  as  early  as  possible 
about  the  time  when  escorts  can  be  provided.   The  Reich  Commis- 
sioner of  Maritime  Shipping  has  been  requested  to  see  that  in- 
formation as  to  the  convoy  timetables  is  made  known  to  as  few 
persons  as  possible,  and  that  secrecy  is  maintained.  He  was  further 
informed  that  regular  air  escort  cannot  be  provided  and  that  hie 
proposal  that  ships  proceed  singly  meets  unanimous  opposition  from 
the  operations  zone,  because  traffic  of  supply  and  merchant  ships 
to  the  Baltic  countries  in  groups  of  2  has  proved  very  satisfactory 
for  more  than  a  year.   The  Naval  Staff  further  requests  the  Reich 
Commissioner  of  Maritime  Shipping  to  see  that  the  number  of  orders 
issued  to  shipping  at  his  request,  many  of  which  are  contradictory, 
be